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: calculation of 60(j.1) limit
Position TAKEN: routine
Reasons FOR POSITION: routine application of law
Staff Sergeant R.V. Reynolds
Compensation Policy & Systems Section
Royal Canadian Mounted Police 5-950726
1200 Vanier Parkway W. Douglas
Ottawa, Ontario
K0A 0R2
March 17, 1995
Re: RRSP Deposits - Severance Pay and Work
Force Adjustment Retiring Allowances
This is with respect to your facsimile of March 15, 1995 to Brian Darling, Rulings Directorate, concerning the calculation of the maximum amount of a retiring allowance that can be rolled to an RRSP under paragraph 60(j.1) of the Income Tax Act.
As discussed, where the employer contributions to a pension plan have vested in respect of a particular year at the time the employee receives a retiring allowance, the maximum rollover permitted for that particular year is limited to $2000 notwithstanding that these contributions may not have vested until some time after the particular year. Accordingly, if at the time a member retires he/she is entitled to a pension, he/she would be entitled to a rollover of $2000 for each year of service even though the first 10 years of employer pension contributions did not vest until after 10 years of service.
We trust the above clarifies our views.
Yours truly
for Director
Financial Industries Division
Rulings Directorate
Policy & Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1995
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1995
Email this Content