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:
Does our position relating to admin fees and RRSPs also apply to "locked-in" RRSPs?
Position: Yes
Reasons:
The expression locked-in RRSP has no meaning for purposes of the Act so our position applies to all RRSPs whether locked-in or not.
971430
XXXXXXXXXX M.P. Sarazin
Attention: XXXXXXXXXX
June 12, 1997
Dear Sirs:
Re: Administration Fees and Registered Retirement Savings Plans ("RRSP")
This is in reply to your letter dated May 23, 1997, wherein you requested confirmation that locked-in RRSPs would be treated the same as regular RRSPs with respect to the payment of administration fees.
The term "locked-in RRSP" has no meaning under the Income Tax Act (the "Act"). A locked-in RRSP is an ordinary RRSP which is subject to a locking-in agreement attached to the RRSP contract which requires that the RRSP be held to provide a periodic pension income to the annuitant after reaching a certain age. This requirement is not imposed by the Act, but by the relevant provincial or federal pension standards legislation. We enclose a copy of a recent technical interpretation issued by this Directorate detailing our current views with respect to the payment of fees relating to RRSPs. The views expressed therein apply to all RRSPs.
We trust the above comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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