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 the Estate of a deceased member of an RPP make contributions to the RPP.
Position:
No.
Reasons:
Contributions can be made to a pension plan by a “member”. The term “member” is defined as an individual who has a right ... to receive benefits under (an RPP) other than an individual who has such a right only by reason of the participation of another individual in the plan. The trustee of an estate of a deceased would not be a member because it would only have a right to receive benefits under a plan by virtue of the deceased member’s participation in the plan.
972970
XXXXXXXXXX W.C. Harding
December 3, 1997
Re: Registered Pension Plan (RPP)
Contributions by An Estate
This is in reply to your letter of November 6, 1997, in which you asked if the executor of the estate of a deceased member of a registered pension plan can make contributions to the plan assuming that the terms of the plan permit such contributions.
Paragraph 8502(b) of the Income Tax Regulations (the Regulations”) describes what contributions may be made to an RPP and subparagraph 8502(b)(i) thereof, permits members of an RPP to make contributions to the plan as otherwise permitted by the plan.
The term “member” is defined in subsection 147.1(1) of the Income Tax Act as “an individual who has a right ... to receive benefits under (an RPP) other than an individual who has such a right only by reason of the participation of another individual in the plan”. Therefore, a trustee or executor of the estate of a deceased member of a pension plan could not be a member of a plan because it would only have a right to receive benefits under the plan by virtue of the deceased member’s participation in the plan. Accordingly, an executor or trustee could not make a contribution to an RPP on behalf of a deceased member of the plan under paragraph 8502(b) of the Regulations.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings
and Interpretations Directorate
Policy and Legislation Branch
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