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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Can a minor child open an RRSP?
Position: Yes.
Reasons: There is nothing in the Income Tax Act, which prevents a minor from being the annuitant of an RRSP. However, under common law, a minor is generally precluded from entering into a binding contract; in which case, the person who can legally bind the minor (i.e. the parent or legal guardian of the minor) would enter into the RRSP contract on the minor's behalf.
XXXXXXXXXX 2001-009631
G. Kauppinen
October 29, 2001
Dear XXXXXXXXXX:
Re: Registered Retirement Savings Plans ("RRSP")
This is in reply to your facsimile transmission dated August 13, 2001 regarding RRSPs.
You ask whether a minor (i.e., a child under the age of 18) can be the annuitant of an RRSP and, if so, can the parent or guardian of the child sign the application to open an RRSP on behalf of the child.
Opinions concerning proposed transactions involving specific taxpayers will only be provided in response to a request for an advance income tax ruling. For more information concerning advance tax rulings, please refer to Information Circular 70-6R4 dated January 29, 2001, issued by the CCRA. Copies of information circulars and interpretation bulletins are available from your local tax services office or on the Internet at the following site - http://www.ccra-adrc.gc.ca/formspubs/menu-e.html. However, we can provide you with the following general comments.
There is nothing in the Income Tax Act that prevents a minor child from being the annuitant of an RRSP and it is our understanding that an RRSP will be registered by the Registrations Directorate of the Canada Customs and Revenue Agency for an annuitant who is a minor. However, since a minor is generally precluded from entering into a binding legal contract under common law, it is also our understanding that issuers of RRSP contracts will require the person who has the legal authority to bind the minor (e.g., the parent or legal guardian of the minor) to enter into the RRSP contract on behalf of the minor.
We trust our comments will be of assistance to you.
Yours truly,
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2001
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2001
Email this Content