Line 129 - RRSP income

At the time of death, a person may have a registered retirement savings plan (RRSP). The RRSP may or may not have matured. Depending on the situation, the amount you include in the deceased's income can vary.

If the deceased person jointly elected with his or her spouse or common-law partner to split RRSP annuity payments that the pensioner received up until the date of death and reported on line 129, the elected split-pension amount can be deducted on line 210, Deduction for elected split-pension amount.

Payments from a matured RRSP

A matured RRSP is one that is paying retirement income, usually in monthly payments. Report on line 129 the RRSP payments the deceased received from January 1 to the date of death.

If the surviving spouse or common-law partner is the beneficiary of the RRSP, as specified in the RRSP contract, he or she will begin receiving the remaining annuity payments from the plan. The surviving spouse or common-law partner has to report the remaining payments as income on his or her return.

If the surviving spouse or common-law partner is the beneficiary of the estate, that person and the legal representative can jointly elect, in writing, to treat the amounts the RRSP paid to the estate as being paid to the spouse or common-law partner. Attach a copy of the written election to the return of the surviving spouse or common-law partner. The election has to specify that this person is electing to become the annuitant of the RRSP.

If the amounts from the RRSP are paid to a beneficiary other than the deceased's spouse or common-law partner, see Guide T4040, RRSPs and Other Registered Plans for Retirement.

For more information on a matured RRSP, see Matured RRSP.

Payments from an unmatured RRSP

Generally, an unmatured RRSP is one that does not yet pay retirement income.

Generally, we consider a deceased annuitant to have received, immediately before death, an amount equal to the fair market value (FMV) of all the property of the unmatured plan at the time of death. The FMV of the property is shown in box 34 of the T4RSP slip issued to the deceased annuitant. You have to include this amount in the deceased's income for the year of death.

If a T4RSP slip showing the FMV of the plan at the time of death is issued in the deceased's name, you may be able to reduce the amount you include in the deceased's income. For details, see Information Sheet RC4177, Death of an RRSP Annuitant or a PRPP Member, and Guide T4040, RRSPs and Other Registered Plans for Retirement.

If all of the property held in the RRSP is to be paid to the surviving spouse or common-law partner, and that payment is directly transferred to his or her RRSP, RRIF, or to an issuer to buy the surviving spouse or common-law partner an eligible annuity (as specified in the RRSP contract) before the end of the year following the year of death, a T4RSP slip will not be issued in the deceased's name. In this case, the surviving spouse or common-law partner has to report the payment on his or her return and claim a deduction equal to the amount transferred.

Sometimes there can be an increase in the value of an RRSP between the date of death and the date of final distribution to the beneficiary or estate. This amount has to be included in the income of the beneficiary or the estate for the year it is received. A T4RSP slip will be issued for this amount. For more information, see Chart 6 - Amounts from a deceased annuitant's RRSP, in Chapter 5 of Guide T4040, RRSPs and Other Registered Plans for Retirement.

Sometimes, the FMV of the property of an unmatured RRSP can decrease between the date of death and the date of final distribution to the beneficiary or the estate. If the total of all distributions from the RRSP is less than the FMV of the property that was included in the deceased annuitant's income for the year of death, the deceased's legal representative can request that the difference between the FMV and the total of all distributions be deducted on the deceased's final return. Generally, for the deduction to be allowed, the final distribution must occur by the end of the year that follows the year of death. For further information, see Information Sheet RC4177, Death of an RRSP Annuitant or a PRPP Member.

If the amounts from the RRSP are paid to a beneficiary other than the deceased's spouse or common-law partner, see Guide T4040, RRSPs and Other Registered Plans for Retirement.

For more information on a unmatured RRSP, see Unmatured RRSP.

Rollover of RRSP proceeds to a registered disability savings plan (RDSP)

For deaths occurring in 2011 and future years, the existing RRSP rollover rules discussed above are extended to allow a specified RDSP payment from the deceased person's RRSP to the RDSP of an eligible individual.

For more information, see Registered disability savings plan or see Information Sheet RC4177, Death of an RRSP Annuitant or a PRPP Member.

Home Buyers' Plan (HBP)

The deceased may have participated in the HBP. If so, the deceased would have made a withdrawal from his or her RRSP and may have been making repayments to the RRSP. In this case, include on line 129 the total of all amounts that remain to be repaid at the time of death. Any RRSP or pooled registered pension plan (PRPP) contributions that the deceased made in the year of his or her death can be designated as a repayment.

However, you do not have to report these amounts when the legal representative and the surviving spouse or common-law partner jointly elect to have the surviving spouse or common-law partner continue to make the repayments.

For more information, see Home Buyers' Plan.

Lifelong Learning Plan (LLP)

The deceased may have participated in the LLP. If so, the deceased would have made a withdrawal from his or her RRSP and may have been making repayments to the RRSP or to a PRPP. Treatment of these amounts is the same as with the Home Buyer's Plan, and a similar election is available. For more information, see Guide RC4112, Lifelong Learning Plan (LLP).

For more information, see Lifelong Learning Plan.

Forms and publications

• General Income Tax and Benefit Guide
• Guide RC4112, Lifelong Learning Plan (LLP)
• Information Sheet RC4177, Death of an RRSP Annuitant or a PRPP Member
• Guide T4011, Preparing Returns for Deceased Persons
• Guide T4040, RRSPs and Other Registered Plans for Retirement

Related topics

• Registered Retirement Savings Plan
• Home Buyers' Plan
• Lifelong Learning Plan

Date modified:

2017-01-04