RPP and DPSP lump-sum payments

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http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrif-ferr/trns/rpp-eng.html

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RPP and DPSP lump-sum payments

RPP amounts

You can contribute to your RRIF by directly transferring a lump-sum amount from an RPP under which:

  • you are a member, if you are entitled to receive the lump-sum;
  • your current or former spouse or common-law partner was the member, if you are entitled to receive the lump-sum because your current or former spouse or common-law partner died; or
  • current or former spouse or common-law partner is a member, if you are entitled to receive the lump-sum under the following conditions:
    • under a decree, order or judgment of a court, or under a written separation agreement; and
    • to settle rights arising out of your relationship on or after the breakdown of your relationship.

Note

In some cases, the Income Tax Act limits how much can be transferred without tax consequences. For more information, see Excess amounts from a RRIF.

DPSP amounts

You can contribute to your RRIF by directly transferring a lump-sum amount from:

  • a DPSP under which you are a member, or former member, if you are entitled to receive the lump-sum;
  • a DPSP under which your current or former spouse or common-law partner was the member, or former member, if you are entitled to receive the lump-sum because your current or former spouse or common-law partner died; or
  • a DPSP under which your current or former spouse or common-law partner is a member, or former member, if you are entitled to receive the lump-sum:
    • under a decree, order, or judgment of a court, or under a written separation agreement; and
    • to settle rights arising out of your relationship on or after the breakdown of your relationship.

Note

For exceptions to the direct transfer requirement and other rules, see Interpretation Bulletin IT-528, Transfers of Funds Between Registered Plans.

Completing your income tax and benefit return

If you transferred the amount directly, do not claim a deduction for the amount transferred and do not include the payment in income.

However, if you received the lump-sum payment in cash or by cheque before making the transfer, the transfer is not tax-free. Report the payment on line 130 of your income tax and benefit return return on the year the payment is received and do not claim a deduction.

Forms and publications

Date modified:
2016-11-09