17 September 1997 External T.I. 9724365 - PEOLPE WHO TURN 70 OR 71 IN 1997 CAN BE REG. RRSP IN 1997

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:

Amendment to Opinion #971843. Whether new retirement savings plan for an annuitant who turns 70 or 71 year old in 1997 can be registered in 1997 in order to receive property from RRSP which was registered before 1997.

Position:

Yes

Reasons:

Annuitant is eligible for a RRSP registration in 1997 if he or she turns 70 or 71 in 1997.

XXXXXXXXXX 972436

Attention: XXXXXXXXXX

September 18, 1997

Dear Sirs:

Re: Amendment to our letter (#971843) of July 25, 1997
Paragraph 146(2)(b.4) of the Income Tax Act (the "Act")

We are writing in connection with our response #971843 of July 25, 1997 to your request on amendment to paragraph 146(2)(b.4) of the Act in which we made an incorrect statement. In fact, in our letter and under "TRANSFEREE RRSP" title, we have indicated the following:

... Where the annuitant is 70 or 71 years of age in 1997 a retirement savings plan will fail to qualify for registration.

This paragraph should be read as follows:

Where the annuitant turns 70 or 71 years of age in 1997, a retirement savings plan will qualify for registration.

We trust this is satisfactory.

Yours truly,

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