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:
Can an individual with more than one RRSP name his wife (separated but not divorced) as beneficiary of some plans and the person's common law spouse as described in paragraph 252(4)(a) as the beneficiary of the other plans?
Position TAKEN:
If at the time the individual dies the same relationships exist, yes
Reasons FOR POSITION TAKEN:
Both the married spouse and the common law spouse would be eligible for the paragraph 60(l) transfer.
XXXXXXXXXX 951540
June 19, 1995
Dear Sirs:
Re: Beneficiary under a Registered Retirement Savings Plan
This is in reply to your letter dated June 5, 1995 wherein you requested clarification of a general comment provided in our letter dated May 30, 1995 (file #950554).
Where an individual is the annuitant of several registered retirement savings plans ("RRSPs") and the individual is both married and living common law as described in paragraph 252(4)(a) of the Act then the individual could name either spouse as the designated beneficiary of any of the RRSPs. The married spouse could be named as the designated beneficiary of some of the RRSPs and the common law spouse could be named as the designated beneficiary of the remainder of the RRSPs. In either case, if, at the time of the individual's death, the individual is married to one person and living common law with another person as described in paragraph 252(4)(a) of the Act, then the spouse named as the designated beneficiary of the individual's RRSP could make a tax-deductible transfer to the spouse's RRSP, registered retirement income fund or eligible annuity to the extent permitted by paragraph 60(l) of the Act.
We trust that the foregoing clarification will be helpful.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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