1 March 1994 External T.I. 9403745 - INFORMATION CONCERNING RRIF'S AND RESP'S

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

RULINGS DIRECTORATE
CORRESPONDENCE SUMMARY

DOCUMENT TYPE:

Opinion

Principal Issues:

Requested general info on RRIF's, LIF's, LRIF's, the Child Tax Benefit and saving for a child's education.

Position TAKEN:

Provided relevant IC's, Guide and fact sheet.

Reasons FOR POSITION TAKEN:

LEGAL:

FINANCE OPINION:

JURISPRUDENCE:

RCT PUBLICATIONS:

HAA NUMBER:

7255-1

XXXXXXXXXX 940374

March 1, 1994

Dear XXXXXXXXXX:

This is in reply to your letter received February 14, 1994, in which you ask us for the latest opinions or rulings on RRIF's (registered retirement income funds), LIF's (life income funds) and LRIF's (locked-in retirement income fund).

Enclosed are copies of Information Circular 78-18R4 (Registered Retirement Income Funds) and the 1993 RRSP's and Other Registered Plans for Retirement Guide (see in particular Chapter 4). These publications contain an explanation of the Department's general procedures and interpretations concerning the Income Tax Act provisions relating to RRIF's. We do not have any general information concerning LIF's and LRIF's since these are arrangements governed by provincial law. LIF's and LRIF's are generally registered under the Income Tax Act as RRIF's, but are subject to additional rules contained in provincial legislation. If, after reading these publications, you have any specific questions concerning the Income Tax Act provisions respecting RRIF's you may contact us (for general interpretations of the law not related to actual fact situations), or your district taxation office (for information concerning your particular income tax situation).

You also asked for information regarding Child Tax Benefits and their tax treatment when used for a child's future education.

Generally speaking, the Child Tax Benefit is an amount paid to a parent who primarily fulfils the responsibility for the care and upbringing of the child. The Child Tax Benefit is not taxable to the recipient under the Income Tax Act. Amounts paid into a registered education savings plan can accrue income tax-free.

Enclosed for your information is a fact sheet on the Benefit (form T4114) and a copy of Information Circular 93-3 (Registered Education Savings Plans). Again, if you have any specific questions after reading these publications, please address them to us or the district taxation office as explained above.

Yours truly,

for Director
Financial Industries Division
Rulings Directorate