18 September 1996 External T.I. 9630305 - RRSP WITHDRAWAL AND RETURN

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Can funds be withdrawn from an RRSP and returned later

Position:

Only under the home buyers plan and some transfers.

Reasons:

General statement of the law

XXXXXXXXXX                                      5-963030

Attention: XXXXXXXXXX

September 18, 1996

Dear Sirs:

Re: Withdrawals from an RRSP

This is in reply to your facsimile of September 12, 1996 in which you asked us to confirm whether there is any mechanism by which an owner of an RRSP can withdraw funds from an RRSP without incurring tax and supported by a promise to repay the funds to the RRSP.

The provisions of The Home Buyers Plan, described in section 146.01 of the Income Tax Act (the "Act"), permits the annuitant of an RRSP to withdraw up to $20,000 from an RRSP and repay it to the RRSP over a period of no more than 15 years without incurring any taxation of the withdrawal. The Act also provides for the withdrawal of funds from an RRSP when they are transferred to some other registered plan, another RRSP or for the purchase of certain annuities. Otherwise, the Act does not provide for the withdrawal of any amounts on a tax free basis subject to their repayment.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch