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.
Principal Issues:
Whether a financial institution acted beyond its authority in respect of a RRSP?
Position TAKEN:
We cannot reply to his request.
Reasons FOR POSITION TAKEN:
Dispute between 2 taxpayers that is probably not related to the interpretation of the Act.
5-950245
XXXXXXXXXX Robert Gagnon
April 20, 1995
Dear Sir:
Re: Administrator of a RRSP
This is in reply to your letter of January 24, 1995 wherein you requested a technical interpretation.
We are unable to reply to your request with respect to the actions of a financial institution without knowing all the relevant facts, including the terms of your registered retirement savings plan ("RRSP"). Moreover, it is our policy not to get involved in a dispute between two parties since the issue is usually not related to the interpretation of the Income Tax Act ("Act"). While we are unable to comment on this issue, the following general comments may be of assistance to you.
A taxpayer's RRSP cannot mature later than December 31 of the year in which the taxpayer attains 71 years of age. A taxpayer can establish a registered retirement income fund ("RRIF") by having funds directly transferred from a RRSP to a RRIF until the day on which maturity occurs.
Where RRSP funds not used to acquire an annuity are not transferred to an RRIF by the end of the year in which the annuitant reaches 71, the RRSP is considered to be deregistered on the first business day following the end of that year. The result of the deregistration is that the fair market value of the RRSP is included in the annuitant's income for the taxation year subsequent to the year in which he reaches 71.
The above comments reflect the relevant provisions of the Act. You may want to request the Ottawa Tax Services Office to consider your special situation if your RRSP was collapsed in 1995 and you believe that your RRSP was not transferred to a RRIF in 1994 because of circumstances beyond your control. The request should be sent to the Director of the Ottawa Tax Services Office (360 Lisgar Street, Ottawa, K1A 0L8) and include all relevant information such as your name, address, S.I.N., and reasons why the transfer to a RRIF was not made in 1994.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretation Directorate
Policy & Legislation Branch
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