T4040(E) Rev. 24

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Find out if this guide is for you

Use this guide if you want information about registered pension plans (RPPs), registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs), specified pension plans (SPPs), and pooled registered pension plans (PRPPs).

This guide has information which is not in the income tax package and which you may need to fill out your income tax and benefit return.

A Tax Free Savings Account (TFSA) is not a registered plan for retirement. You should refer to Guide RC4466, Tax-Free Savings Account (TFSA), Guide for Individuals.

The CRA has included definitions of some of the terms used in this guide in the Definitions section. You may want to read this section before you start.

La version française de ce guide est intitulée REER et autres régimes enregistrés pour la retraite.

Unless otherwise stated, all legislative references are to the Income Tax Act or, where appropriate, the Income Tax Regulations.

Table of contents

• Definitions
• Chapter 1 – RPP contributions
  • Fixing contribution errors in money purchase registered pension plans (2021 and subsequent years)
  • Current service and past service contributions for 1990 or later years
  • Past service contributions for 1989 or earlier years
  • Interest on past service contributions
  • Other deductions
• Chapter 2 – RRSP contributions
  • How to claim your RRSP deduction
  • Age limit for contributing to an RRSP
  • Contributing to your RRSPs
  • Contributing to your spouse's or common-law partner's RRSP or SPP, or both
  • Keeping track of your RRSP, PRPP and SPP contributions – Schedule 7
  • Unused RRSP, PRPP or SPP contributions
  • Tax on RRSP excess contributions
• Chapter 3 – RRIF contributions
  • Property from an RRSP, PRPP, or SPP
  • RPP amounts
  • DPSP amounts
  • Property from another RRIF
  • Specified pension plan (SPP) amounts
  • Property from an FHSA
• Chapter 4 – Anti-avoidance rules for RRSPs and RRIFs
  
  • Tax payable on prohibited investments
  • Tax payable on non-qualified investments
  • Refund of taxes paid on non-qualified or prohibited investments
  • Obligations of the RRSP issuer or RRIF carrier
  • Tax payable on an advantage
  • Waiver or cancellation of tax
• Chapter 5 – Amounts from an RRSP or a RRIF
  • Yearly minimum amount from a RRIF
  • Transfers to registered disability savings plans
  • Locked-in RRSP
  • Amounts paid from or into a spousal or common-law partner RRSP, RRIF, or SPP
• Chapter 6 – Transfers to registered plans or funds and annuities
  • Other transfers
  • Direct transfer of an RPP lump-sum amount
• Chapter 7 – PAs, PARs and PSPAs
  • Pension adjustments (PAs)
  • Pension adjustment reversals (PARs)
  • Past service pension adjustments (PSPAs)
• Chapter 8 – Pooled registered pension plan (PRPP)
  • Eligibility
  • Participation
  • Contributions to a PRPP
  • PRPP transfers
  • PRPP payments
  • PRPP withdrawals
  • PRPP life events
• Chapter 9 - Advanced life deferred annuity (ALDA) transfers
  • Tax on ALDA cumulative excess amounts
  • Waiver or cancellation of tax
  • Death of an ALDA annuitant
• Chapter 10 – First home savings account (FHSA) transfers
  • Transfer from an RRSP to an FHSA
  • Transfer from an FHSA to an RRSP or RRIF
  • Tax deduction on transfer from an RRSP to an FHSA
• Digital services
  • Digital services for individuals
  • My Account
  • Receive your CRA mail online
  • Electronic payments
• Related forms and publications
• For more information
  • If you need help
  • Direct deposit
  • Forms and publications
  • Electronic mailing lists
  • Tax Information Phone Service (TIPS)
  • Teletypewriter (TTY) and Video Relay Service (Canada VRS) users
  • Formal disputes (objections and appeals)
  • CRA service feedback program
    • Service complaints
    • Reprisal complaints
  • Due dates
  • Cancel or waive penalties and interest

Definitions

This section provides a general definition of the technical terms that the CRA uses in this guide.

Advanced life deferred annuity (ALDA) – a life annuity where the annuity payments must be started before the end of the year in which the annuitant turns 85 years of age.

Advantage – any benefit, or debt that is conditional on the existence of the RRSP or RRIF, subject to certain exceptions for normal investment activities and conventional incentive programs.

An advantage also includes any benefit that is an increase in the total fair market value (FMV) of the property of the RRSP or RRIF that is reasonably attributable to any one of the following:

• a transaction or an event (or a series) that would not have occurred in a normal commercial or investment context between arm’s length parties acting prudently, knowledgeably, and willingly, and one of the main purposes of which is to benefit from the tax-exempt status of the RRSP or RRIF

• a payment received in substitution for a payment for services rendered by the annuitant (or non-arm's length person) or for a return on investment on non-registered property
• a swap transaction
• a specified non-qualified investment income that has not been paid from the RRSP or RRIF within 90 days of the annuitant receiving a notice from CRA requiring removal

An advantage also includes a registered plan strip, or any benefit that is income or a capital gain that is reasonably attributable to one of the following:

• a prohibited investment
• an artificial diversion of an amount away from the RRSP or RRIF

For more information on advantages, refer to Income Tax Folio S3-F10-C3, Advantages – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs.

Annuitant – generally, an annuitant of an RRSP or a RRIF is the person for whom the plan or fund provides a retirement income. In certain circumstances, the surviving spouse or common-law partner may qualify as the annuitant when, because of the death, they become entitled to receive benefits out of the plan or fund.

Arm’s length – refers to a relationship or a transaction between unrelated persons who act in their own separate interests. An arm’s length transaction is generally a transaction that reflects ordinary commercial dealings between parties acting in their own separate interests.

For more information, refer to Income Tax Folio S1-F5-C1, Related Persons and Dealing at Arm's Length.

Common-law partner – a person who is not your spouse, with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. The person:

• has been living with you in a conjugal relationship, and this current relationship has lasted for at least 12 continuous months

Note
In this definition, “12 continuous months” includes any period that you were separated for less than 90 days because of a breakdown in the relationship.

• is the parent of your child by birth or adoption
• has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support

Commutation payment – a fixed or single lump-sum payment from your RRSP annuity that is equal to the current value of all or part of your future annuity payments from the plan.

Deferred profit-sharing plan (DPSP) – an employer-sponsored plan the CRA registers, in which the employer shares the profits of a business with all the employees or a designated group of employees.

Defined benefit provision – the terms of an RPP that promise a certain level of pension on retirement, based on the employee's earnings and years of service.

Earned income – the CRA calculates your earned income by adding your employment earnings, self-employment earnings, and certain other types of income, then subtracting specific employment expenses and business or rental losses. To calculate your earned income, refer to Step 2 of Chart 3.

Qualifying performance income (generally endorsement income, prize money, or income from public appearances received by an amateur athlete) contributed to an amateur athlete trust (AAT), qualifies as earned income in determining the RRSP deduction limit of the trust’s beneficiary.

Excess ALDA transfer – An excess ALDA transfer is defined in subsection 205(1) of the Income Tax Act and is informally referred to as an amount in excess of the 25% limit.

Fair market value (FMV) – is generally considered to mean the highest price expressed in terms of money that can be obtained in an open and unrestricted market between informed and prudent parties, who are dealing at arm’s length, and under no compulsion to buy or sell.

For more information on the valuation of securities of closely-held corporations, refer to Information Circular IC89-3, Policy Statement on Business Equity Valuations.

Financially dependent – if you are a child or grandchild of an annuitant, you are generally considered financially dependent on that annuitant at the time of their death if, before that person's death, you ordinarily resided with and depended on the annuitant, and you meet one of the following conditions:

• your net income for the previous year (shown on line 23600 of your income tax and benefit return) was less than the unreduced maximum basic personal amount (line 30000 of your income tax and benefit return) for that previous year
• your financial dependence was due to mental or physical infirmity and your net income for the previous year was equal to or less than the unreduced maximum basic personal amount plus the disability amount (line 31600 of your income tax and benefit return) for that previous year

If, at the time of the annuitant's death, you are away from home because you were attending school, the CRA still considers you to have resided with the annuitant.

If you meet one of the above conditions and did not reside with the annuitant at the time of their death, but received significant financial support from the annuitant, the CRA may consider you to be financially dependent on the annuitant at the time of their death, if you can establish that you were. To do so, you or the legal representative should submit a request in writing to your tax services office explaining why the CRA should consider you to be financially dependent on the annuitant at the time of their death.

If your net income was more than the amounts described above, the CRA will not consider you to be financially dependent on the annuitant at the time of their death, unless you can establish that you were by submitting a request as described above.

First home savings account (FHSA) – a registered plan which allows you, if you are a first-time home buyer, to save money to buy or build a qualifying first home tax-free (up to certain limits).

Foreign plan – a plan or arrangement maintained primarily to benefit non-residents for services they perform outside Canada.

Matured RRSP – an RRSP that is paying you retirement income.

Money purchase provision – the terms of an RPP under which the amount of your pension depends on how much you and your employer contribute to the RPP for you.

Non-arm's length – generally refers to a relationship or transaction between persons who are related to each other.

However, a non-arm’s length relationship might also exist between unrelated individuals, partnerships, or corporations, depending on the circumstances.

For more information, refer to the definition of Arm’s length.

Non-qualified investment – any property that is not a qualified investment for the RRSP or RRIF trust.

For more information on non-qualified investments, refer to Income Tax Folio S3-F10-C1, Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs.

Pooled registered pension plan (PRPP) – a retirement savings plan to which you or your employer, or both, can contribute. Any income earned in the PRPP is usually exempt as long as it remains in the plan.

Prohibited investment – this is property to which the RRSP or RRIF annuitant is closely connected. It includes any of the following:

• a debt of the annuitant
• a debt or share of, or an interest in, a corporation, trust, or partnership in which the annuitant has a significant interest (generally a 10% or greater interest, taking into account non-arm's length holdings)
• a debt or share of, or an interest in, a corporation, trust, or partnership with which the annuitant does not deal at arm's length

A prohibited investment does not include a mortgage loan that is insured by the Canada Mortgage and Housing Corporation or by an approved private insurer. It also does not include certain investment funds and certain widely held investments which reflect a low risk of self-dealing.

For more information, refer to Income Tax Folio S3-F10-C2, Prohibited Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs.

Qualified investment – an investment in properties (except real property), including money, guaranteed investment certificates, Canada savings bonds and provincial savings bonds, mutual funds, and most securities listed on a designated stock exchange.

For more information, refer to Income Tax Folio S3-F10-C1, Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs.

Qualifying group plan amounts – (often referred to as mandatory group plan amounts) They are contribution amounts that you are required to make to a PRPP or a "qualifying arrangement." An arrangement is a qualifying arrangement if all the following apply:

• it is for two or more individuals
• the contributions are amounts you are entitled to for services you provided
• the contributions are remitted to the RRSP by the person who pays you, or by an agent for that person

Qualifying group plan amounts do not include amounts that you could have prevented from being paid after beginning to participate in the arrangement and within 12 months before the amount was paid.

Qualifying retirement plan – for purposes of the Canada–United States tax convention, a United States qualifying retirement plan is a plan that is generally exempt from income tax in the United States and is operated primarily to provide pension or retirement benefits. Common qualifying United States retirement plans include 401(k) arrangements.

Qualifying survivor – is the annuitant's spouse or common-law partner or the annuitant's financially dependent child or grandchild.

Refund of premiums – is some or all of an amount paid out of an RRSP to a qualifying survivor as a result of the annuitant's death. A refund of premiums includes an amount paid as an RRSP benefit, but it does not include a tax-paid amount.

If amounts are paid to the estate and the qualifying survivor is a beneficiary of the estate, the qualifying survivor and the legal representative of the estate can jointly elect to treat part, or all of the amounts paid to the estate as received by the qualifying survivor as a refund of premiums.

Registered disability savings plan (RDSP) – a trust arrangement between an individual (the holder) and a trust company in Canada (the issuer) that provides for the long-term financial security of a beneficiary who has a prolonged and severe mental or physical impairment.

Registered education savings plan (RESP) – a registered contract between an individual (the subscriber) and a person or an organization (the promoter). The subscriber generally makes contributions to the RESP, which earns income, paid in the form of educational assistance payments to one or more identified beneficiaries.

Registered pension plan (RPP) – a pension plan that the CRA has registered. Funds are contributed by an employer (or by an employer and employees) to provide a pension to employees when they retire.

Registered plan strip – the amount of a reduction in the FMV of property of the RRSP or RRIF, if the value is reduced as part of a transaction or an event (or series) for which one of the main purposes is to enable the annuitant (or non-arm’s length person) to obtain a benefit in respect of the property of the RRSP or RRIF, or to obtain a benefit as a result of the reduction. Exceptions are provided for plan distributions that are included in income or specifically excluded from income (such as a tax-deferred transfer between plans).

For more information on a registered plan strip, refer to Income Tax Folio S3-F10-C3, Advantages – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs.

Registered retirement savings plan (RRSP) – a retirement savings plan that you establish, that the CRA registers, and to which you or your spouse or common-law partner contribute. Any income you earn in the RRSP is usually exempt as long as the funds remain in the plan. You generally have to pay tax when you receive payments from the plan.

Related persons – are not considered to deal with each other at arm’s length. Related persons include individuals connected by blood relationship, marriage, common-law partnership, or adoption (legal or in fact). A corporation and another person or two corporations may also be related persons.

For more information, refer to Income Tax Folio S1-F5-C1, Related Persons and Dealing at Arm's Length.

RRIF carrier – An entity (such as an insurance company, a trust company, or a bank) that is authorized to open a RRIF on your behalf.

RRSP contribution – the amount you pay, in cash or in kind, at the time you contribute to an RRSP. In kind contributions consist of the FMV of the property.

RRSP deduction – the amount you indicate on line 20800 of your income tax and benefit return. Your RRSP deduction claim is limited by the amount of your RRSP, PRPP, or SPP contributions previously made and your RRSP deduction limit.

RRSP deduction limit – the maximum amount you can deduct from contributions you made to your RRSP, PRPP, or SPP and to your spouse's or common-law partner's RRSP or SPP for a year (excluding transfers to your RRSPs of certain types of qualifying income). The calculation is based, in part, on your earned income in the previous year. Pension adjustments (PAs), past service pension adjustments (PSPAs), pension adjustment reversals (PARs), prescribed amount for connected persons, and your unused RRSP deduction room at the end of the previous year are also used to calculate the limit.

For information on the prescribed amount for connected persons, refer to Chapter 13 of Guide T4084, Pension Adjustment Guide.

RRSP issuer – An entity (such as a bank, credit union, trust, or insurance company) that is authorized to open an RRSP on your behalf.

RRSP limit – the maximum amount of new RRSP deduction room that you can create for a year and is one of the amounts used to determine your RRSP deduction limit for that year.

For more information, refer to Step 3 of Chart 3.

RRSP excess contributions – generally, the amount of your RRSP, PRPP, and SPP contributions that is more than your RRSP deduction limit for the year plus $2,000. If you have RRSP excess contributions, you may have to pay a tax of 1% per month on those contributions.

For more information, refer to Tax on RRSP excess contributions.

Retiring allowance – this is an amount you receive on or after retirement from an office or employment in recognition of long service. It can include payment for unused sick leave and amounts you receive for loss of office or employment, whether as a payment of damages or a payment under an order or judgment of a competent tribunal.

For more information, refer to Chart 8.

Specified non-qualified investment income – any income (excluding the dividend gross-up) or a capital gain that is reasonably attributable, directly or indirectly, to an amount that is taxable for any RRSP or RRIF of the annuitant (for example, subsequent generation income earned on non-qualified investment income or on income from a business carried on by an RRSP or RRIF).

Specified pension plan (SPP) – a pension plan or similar arrangement that has been prescribed under the Income Tax Regulations as a "specified pension plan" for purposes of the Income Tax Act. Many of the rules related to RRSPs also apply to SPPs.

Specified retirement arrangement (SRA) – a pension plan that the CRA does not register for income tax purposes and that is either not funded or only partly funded.

Spousal or common-law partner RRIF – a RRIF that received amounts or transfers of property from your spousal or common-law partner RRSP; or any of your other spousal or common-law partner RRIFs.

Spousal or common‑law partner RRSP – an RRSP that you establish to pay yourself income at maturity that you or your spouse or common-law partner contributes to. Also, an RRSP that received amounts or transfers from any of your other spousal or common-law partner RRSPs or from your spousal or common law partner RRIF.

Spouse – a person to whom you are legally married.

Swap transaction – any transfer of property between the RRSP or RRIF and its annuitant (or non-arm's length person). Exceptions are provided for contributions to and distributions from the plan, purchase and sale transactions between an individual's two plans with the same tax attributes (for example, RRSP to RRSP or RRIF) and transactions relating to insured mortgages.

For more information on swap transactions and applicable transitional rules, refer to Income Tax Folio S3-F10-C3, Advantages – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs.

Transitional prohibited investment benefit – this expression is relevant only if an individual held one or more prohibited investments in their RRSP or RRIF on March 23, 2011, and continues to hold the investments in their RRSP or RRIF in the tax year. An individual’s transitional prohibited investment benefit for a tax year is the total of any income earned (excluding the dividend gross-up) and capital gains realized in the tax year on these investments, less any capital losses realized on these investments in the tax year. For this purpose, the amount of a capital gain realized is the positive difference between the FMV of the property when it is disposed of by the RRSP or RRIF, or when it ceases to be a prohibited investment (less reasonable costs of disposition, if any) and the FMV of the property on March 22, 2011. The amount of a capital loss is the negative difference.

Unmatured RRSP – generally, an RRSP that has not yet started to pay you retirement income.

Unrelated persons – may not be dealing with each other at arm’s length at a particular time. Each case will depend upon its own facts. The following criteria will generally be used to determine if the parties to a transaction are not dealing at arm’s length:

• whether there is a common mind that directs the bargaining for the parties to a transaction
• whether the parties to a transaction act in concert without separate interests; ("acting in concert" means, for example, that parties act with considerable interdependence on a transaction of common interest)
• whether there is de facto control of one party by the other because of, for example, advantage, authority, or influence

For more information, refer to Income Tax Folio S1-F5-C1, Related Persons and Dealing at Arm's Length.

Unused RRSP, PRPP and SPP contributions – the amount of your RRSP, PRPP and SPP contributions that you could not deduct or have chosen not to deduct, and that you did not designate as an HBP or LLP repayment for any year. Use Schedule 7, RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities, to keep track of these contributions. This amount is carried forward to the following year and you can use it as a deduction up to your RRSP deduction limit for that year.

Unused RRSP deduction room at the end of the year – generally, your RRSP deduction limit for the year minus the amount you deducted for RRSP, PRPP, and SPP contributions for that year.

If you rendered services as an employee in the United States in the year, the amount you contributed in the year to a qualifying retirement plan in the United States and deducted in your income tax and benefit return will reduce your unused RRSP deduction room. For more information, refer to Other deductions.

Chapter 1 – RPP contributions

This chapter has information about making contributions to your registered pension plan (RPP). Particularly, it will help you calculate the amount you can deduct for RPP contributions if you:

• contributed more than $3,500 to an RPP in 2024 and your information slip shows a past service amount for a period before 1990
• contributed an amount to an RPP in an earlier year, for a period before 1990, and you have not fully deducted that amount

Current service is a period of service in the year, which is credited under your RPP by your employer. Current service contributions are amounts you contribute for that period of service.

Generally, past service refers to a period of service with an employer in an earlier year that is later credited under the defined benefit provision of your RPP. Past service contributions are amounts you contribute for that period of service. They may also include contributions you make to upgrade benefits for pensionable service you accrued in the past.

You usually make your past service contributions in a lump-sum or by instalments. Your RPP may allow you to directly transfer amounts from other registered plans to pay for the cost of the past service benefits. For more information, refer to Chapter 6 – Transfers to registered plans or funds and annuities.

For more information on RPP contributions, refer to archived Interpretation Bulletin IT-167R6, Registered Pension Funds or Plans – Employee's Contributions.

Fixing contribution errors in money purchase registered pension plans (2021 and subsequent years)

Effective January 1, 2021, plan administrators of money purchase registered pension plans (MP RPPs) are able to correct for both under-contributions and over-contributions. They would be permitted to:

• Correct certain types of errors through additional contributions to an employee’s account under a MP RPP to compensate for an under-contribution error made in any of the preceding 10 years, subject to a dollar limit. Such corrections are called Permitted Corrective Contributions (PCCs) and will be reported on Form T215, Past Service Pension Adjustment (PSPA) Exempt from Certification or Permitted Corrective Contribution (PCC) by the plan administrator.
• Correct for pension over-contribution errors in respect of an employee for any of the 10 years prior to the year in which the excess amount is refunded to the contributor. Such corrections are called Pension Adjustment Corrections (PACs) and will be reported on Form T10, Pension Adjustment Reversal (PAR) or Pension Adjustment Correction (PAC) by the plan administrator.

This measure would apply in respect of additional contributions made and amounts of over-contributions refunded in the 2021 and subsequent taxation years.

Current service and past service contributions for 1990 or later years

On line 20700 of your income tax and benefit return, you can deduct the amount shown in box 20 of your 2024 T4 slip (if there is no amount in box 74 or 75 in the "Other information" area at the bottom of the slip) or on your union dues receipt. This amount includes:

• current service contributions
• past service contributions for 1990 or later years
• permitted corrective contributions

You can only deduct these contributions on your 2024 income tax and benefit return. You cannot deduct them for any other year.

An amount in box 74 or 75 in the "Other information" area of your T4 slip indicates that part or the entire amount in box 20 is for past service before 1990. For more information, refer to Past service contributions for 1989 or earlier years. You can view your T4 and other tax information slips online by going to My Account for Individuals.

Past service contributions for 1989 or earlier years

Calculate the amount you can deduct for past service contributions to an RPP for 1989 or earlier years based on whether the contributions were for service while you were a contributor or for service while you were not a contributor. Chart 1 will help you to determine the type of past service contributions you made for 1989 or earlier years.

Past service contributions you made for 1989 or earlier years appear in boxes 20, 74, and 75 of your 2024 T4 slip, in boxes 032, 126, and 162 of your 2024 T4A slip, or on a receipt that your plan administrator issued. You can view your T4, T4A, and other tax information slips online by going to My Account for Individuals.

In some cases, you may be able to deduct for 2024 only part of the past service contributions you made. If this applies, you can carry forward the amount you cannot deduct to 2025 or later years. Future versions of this guide will help you calculate the amount you can deduct for 2025 or later years.

If, for 2024, you deduct a carry-forward of past service contributions from an earlier year, attach a statement to your income tax and benefit return giving a breakdown of the amount of contributions you claimed for service while you were a contributor and for service while you were not a contributor.

Fill out Chart 2 to calculate the amount of past service contributions you made for 1989 or earlier years that you can deduct for 2024.

Interest on past service contributions

If you elected after November 12, 1981, to make past service contributions and you make them in instalments, the annual instalment interest you pay is a past service contribution. Include this amount when you calculate how much you can deduct for past service contributions for 2024 on line 20700 of your income tax and benefit return.

Other deductions

Pension repayments – If an individual repays to an RPP an overpayment of an amount received from the RPP that was included in their income for the year, or a preceding year, the individual can claim a deduction equal to the overpayment amount. The repayment must be for an amount that may reasonably be considered to have been paid from the RPP in error and not as an entitlement to benefits under the RPP. The individual cannot claim a deduction for the repayment if they are already claiming a deduction for this amount as a contribution to the RPP.

In addition, the Income Tax Act allows you to deduct repayments you made to your RPP in certain circumstances based on the two following acts:

• the Public Service Superannuation Act
• the Royal Canadian Mounted Police Superannuation Act

For more information, call 1-800-959-8281.

Canada–United States commuters – A resident of Canada, who works in the United States (commonly referred to as a "commuter"), and is a member of a qualifying retirement plan in the United States, can deduct their contributions to that plan on their Canadian income tax and benefit return, as long they meet certain conditions and respect certain limits.

The maximum amount that you can deduct for a year is the contributions you made in the year that are attributable to the work you performed in the year. This maximum is further limited to your RRSP deduction limit for the year after reducing that limit by any RRSP contributions that you deducted for the year.

The qualifying retirement plan contributions you deduct for the year also reduce your unused RRSP deduction room at the end of the year that is carried forward and included in your following year's RRSP deduction limit. You can view your RRSP information online by going to My Account for Individuals.

Depending on your situation, you will have to fill out either:

• Form RC267, Employee Contributions to a United States Retirement Plan for Temporary Assignments
• Form RC268, Employee Contributions to a United States Retirement Plan for Cross-Border Commuters
• Form RC269, Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for Non-United States Plans or Arrangements.

These forms are available at Forms and publications.

Chart 1 – Buying back service or upgrading past service benefits for 1989 or earlier years - To determine if your RPP past service contribution is for service while you were a contributor or for service while you were not a contributor

Use this chart to determine the type of period your contribution relates to. You can then use Chart 2 to calculate the amount you can deduct for that type of contribution.

Calculating your 2024 deduction for your RPP contributions

Chart 2 – Calculating your 2024 deduction for your RPP contributions

Chapter 2 – RRSP contributions

This chapter has general information on contributing to your RRSPs or your spouse's or common-law partner's RRSPs, as well as information on calculating your 2024 RRSP deduction limit.

The rules the CRA explains in this chapter apply to all RRSPs and, unless otherwise stated, SPPs and PRPPs.

March 3, 2025, is the deadline for contributing to an RRSP for the 2024 tax year.

Canada Savings Bonds – You can transfer your holdings of past series compound-interest Canada Savings Bonds to your RRSPs or your spouse's or common-law partner's RRSPs. The amount you transfer is considered a contribution to the RRSP. For more information, contact your RRSP issuer.

Self-directed RRSPs – These RRSPs allow you to control the assets and make the investment decisions yourself. This is not applicable for PRPPs and SPPs. Your financial institution can tell you if it offers self-directed RRSPs. The issuer (such as a bank, credit union, trust, or insurance company) can take care of the administrative details, including getting the plan registered, receiving the amounts you contribute, and trading securities. Securities cannot be held in your own name.

Qualified Investments – You should pay particular attention to the type of investments you choose for your plan. If you buy non-qualified investments in your RRSP or RRIF, or if qualified investments held in your RRSP or RRIF become non-qualified, there are tax implications.

The rules include a tax on the annuitant of an RRSP or a RRIF that acquires a prohibited investment. For more information on anti-avoidance rules, refer to Chapter 4 – Anti-avoidance rules for RRSPs and RRIFs and Income Tax Folio S3–F10–C1, Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs, or contact your RRSP issuer.

How to claim your RRSP deduction

On line 20800 of your income tax and benefit return, you can deduct RRSP contributions you made up to the limits the CRA explains in the following sections.

Your RRSP issuer will give you a receipt for the amounts you contributed. If you contributed to your spouse's or common-law partner's RRSP, the receipt should show your name as the contributor and your spouse's or common-law partner's name as the annuitant. Attach the receipt(s) with your income tax and benefit return to support the amount you deducted. If you are using electronic filing (EFILE, NETFILE), show your receipts to your income tax service provider and keep them in case the CRA asks to see them.

If you are using the NETFILE service, also keep your receipts in case the CRA asks to see them. If you do not get your receipts before the filing deadline, refer to Tax slips for more information.

If you are deducting an amount for 2024 in respect of contributions that you made before March 1, 2024, but had not previously deducted, you should have filled out and sent a Schedule 7, RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities, for these contributions, for each particular year. If you did not, you should fill out and send a copy of the appropriate Schedule 7 for each year, along with the appropriate RRSP receipts, to your tax centre. Send these separate from your 2024 income tax and benefit return.

Age limit for contributing to an RRSP

The year you turn 71 is the last year in which you can make a contribution to your RRSP.

You can contribute to an RRSP under which your spouse or common-law partner is the annuitant until the end of the year your spouse or common-law partner turns 71.

Contributing to your RRSPs

This section will help you determine how much of your RRSP contributions you can deduct on line 20800 of your 2024 income tax and benefit return.

How much can you deduct

The amount of RRSP contributions that you can deduct for 2024 is based on your 2024 RRSP deduction limit, which appears on your latest notice of assessment or notice of reassessment, or on Form T1028, Your RRSP, HBP, LLP, or FHSA information for 2024.

You can also deduct amounts for certain income you transfer to your RRSP. Your RRSP deduction limit is not reduced by these amounts. For more information on transfers, refer to Chapter 6 – Transfers to registered plans or funds and annuities.

Any income you earn in your RRSP is usually exempt for the time the funds remain in the plan.

However, in respect of your RRSP, you cannot:

• claim a deduction for capital losses within your RRSP
• claim a deduction for amounts you pay for administration services for an RRSP
• deduct brokerage fees charged to buy and dispose of securities within a trusteed RRSP
• deduct the interest you paid on money you borrowed to contribute to an RRSP

If the CRA reassesses a previous years’ income tax and benefit return, your revised 2024 RRSP deduction limit will appear on the notice of reassessment or, in some cases, on Form T1028. The CRA will also send you the Form T1028 with a new RRSP deduction limit if your RRSP deduction limit has changed for reasons other than a reassessment of a previous year’s income tax and benefit return.

If you do not have a copy of your notice of assessment or reassessment nor a Form T1028, you can find out the amount of your RRSP deduction limit by:

• calling 1-800-959-8281
• going to My Account for Individuals. For more information, refer to My Account
• calling our Tax Information Phone Service (TIPS). For more information, refer to Tax Information Phone Service (TIPS).

Calculating your 2024 RRSP deduction limit

Your 2024 RRSP deduction limit is shown on your latest notice of assessment or notice of reassessment. The CRA determines your 2024 RRSP deduction limit from information on your 2023 and previous years’ income tax and benefit returns, and from information the CRA keeps on record. If any of that information changes, your RRSP deduction limit may also change. If the RRSP deduction limit and available contribution room statement does not include your latest notice of assessment or reassessment or if you have not received a Form T1028, Your RRSP, HBP, LLP, or FHSA information for YYYY, you can find out the amount of your 2024 RRSP deduction limit by:

• calling 1-800-959-8281
• going to My Account for Individuals
• calling the CRA's Tax Information Phone Service (TIPS). For more information, refer to Tax Information Phone Service (TIPS)

Contributions you can deduct for 2024

For 2024, you can deduct contributions you made to your or your spouse's or common-law partner's RRSP or SPP from January 1, 1991, to March 3, 2025.

You can also deduct contributions you made to your PRPP from January 1, 2013, to March 3, 2025 (do not include your employer's contributions). You can deduct these contributions if you did not deduct them for any other year, and if they are not more than your RRSP deduction limit for 2024. Even if you can no longer contribute to your RRSP in 2024 because of your age, you can deduct your unused RRSP, PRPP and SPP contributions up to your RRSP deduction limit.

The Home Buyers' Plan (HBP) and the Lifelong Learning Plan (LLP) – If you participate in the HBP or LLP, you may not be able to deduct, for any year, all or part of the contributions you made to your RRSP during the 89-day period just before you withdrew an amount under either of these plans. To determine the part of the contributions you made to your RRSP that you cannot deduct, go to The Home buyers' Plan (HBP) or refer to Guide RC4112, Lifelong Learning Plan (LLP), whichever applies.

Contributing to your spouse's or common-law partner's RRSP or SPP, or both

Generally, the total amount you can deduct on line 20800 of your 2024 income tax and benefit return for contributions you make to your spouse’s or common-law partner’s RRSP or SPP and to your own RRSP, PRPP, or SPP cannot be more than your 2024 RRSP deduction limit.

If you cannot contribute to your RRSP, PRPP, or SPP because of your age, you can still contribute to your spouse's or common-law partner's RRSP or SPP until the end of the year they turn 71.

Contributions made after death – No contributions can be made to a deceased individual's RRSP, PRPP, or SPP after their date of death. However, the deceased individual's legal representative can make contributions to the surviving spouse's or common-law partner's RRSP or SPP in the year of death or during the first 60 days after the end of that year. Contributions made to a spouse's or common-law partner's RRSP or SPP can be claimed on the deceased individual's income tax and benefit return up to that individual's RRSP deduction limit for the year of death.

The HBP and the LLP – If your spouse or common-law partner participates in the HBP or LLP, you may not be able to deduct, for any year, all or part of the contributions you made to your spouse's or common-law partner's RRSP during the 89-day period just before your spouse or common-law partner withdrew an amount under either of these plans. To determine the part of the contributions you made to your spouse's or common-law partner's RRSP that you cannot deduct, go to The Home buyers' Plan (HBP) or refer to Guide RC4112, Lifelong Learning Plan (LLP), whichever applies.

If you have a payment arrangement contract with a financial institution to make contributions to your own RRSP or to your spouse's or common-law partner's RRSP, you can use Form T1213, Request to Reduce Tax Deductions at Source, to request authorization for your employer to reduce your tax deductions at source.

Keeping track of your RRSP, PRPP, and SPP contributions – Schedule 7

Use Schedule 7, RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities, to keep track of your RRSP, PRPP, and SPP contributions.

If you made contributions to your RRSP, PRPP, or SPP, or your spouse’s or common‑law partner’s RRSP or SPP from March 1, 2024, to March 3, 2025, and you are not deducting the total contributions on your 2024 income tax and benefit return, attach a completed Schedule 7 to your 2024 income tax and benefit return. If you have already filed your income tax and benefit return, fill out Schedule 7 and send it to your tax centre with your RRSP, PRPP or SPP receipts and a note that includes both your name and social insurance number.

You may not have to fill out Schedule 7. To find out, read the information at the top of the schedule. If you do have to fill it out, you will find information below about lines 1, 2, 3, 7, 8, 15, 18, and 24 to 28.

Line 1 – Unused RRSP, PRPP, and SPP contributions

These are amounts you contributed to your own RRSP, PRPP, or SPP, or to an RRSP or SPP for your spouse or common‑law partner after 1990, but did not deduct on line 20800 (line 208 for 2018 and prior tax years), of any previous income tax and benefit return, or designate as an HBP or LLP repayment.

The total of these amounts is identified on the “Unused RRSP contributions previously reported and available to deduct for 2024” line on your 2024 RRSP deduction limit and available contribution room statement. These amounts are shown on:

• your latest notice of assessment, or notice of reassessment
• Form T1028, Your RRSP, HBP, LLP, or FHSA information for 2024, if you reported them on a previous year’s Schedule 7

If you do not have your notice of assessment, notice of reassessment, or Form T1028, you can find out if you have unused RRSP, PRPP, or SPP contributions by:

• calling 1-800-959-8281
• going to My Account for Individuals
• calling our Tax Information Phone Service (TIPS). For more information, refer to Tax Information Phone Service (TIPS)

For information on unused PRPP contributions, refer to Contributions to a PRPP.

Lines 2 and 3 – Total RRSP, PRPP and SPP contributions

This total includes all amounts you:

• contributed to your own RRSP from March 1, 2024, to March 3, 2025
• contributed to your spouse or common law partner’s RRSP from March 1, 2024, to March 3, 2025
• contributed to your account, or your spouse's or common-law partner's account, under an SPP from March 1, 2024, to March 3, 2025
• contributed to your PRPP from March 1, 2024, to March 3, 2025 (do not include your employer’s PRPP contributions)
• transferred to your own RRSP (refer to Line 15 – Transfers)
• designated as HBP or LLP repayments (refer to Lines 7 and 8 – Contributions designated as a repayment under the HBP and the LLP)

Include on these lines all contributions you made from March 1, 2024, to March 3, 2025, even if you are not deducting or designating them on your income tax and benefit return for 2024. Otherwise, the CRA may reduce or disallow your claim for these contributions on your income tax and benefit return for a future year.

Do not include the following amounts:

• Any unused RRSP, PRPP, or SPP contributions you made on or after March 1, 2024, refunded to you or your spouse or common-law partner in 2024. Report the refund of RRSP contributions on line 12900 of your income tax and benefit return. If you received a refund of your PRPP contributions, report those amounts on line 11500 if you are 65 or older at the end of the year, or if, regardless of your age, you received the amount on the death of your spouse or common-law partner. Report these amounts on line 13000 in all other cases. Refunded SPP contributions are reported on line 11500 of your income tax and benefit return. You may be able to claim a deduction on line 23200. For more information, refer to Unused RRSP, PRPP, or SPP contributions
• Part or all of the contributions you made to your RRSP or an RRSP for your spouse or common-law partner less than 90 days before either of you withdrew funds from that RRSP under the HBP or the LLP. For more information, go to What is the Home Buyers' Plan or refer to Guide RC4112, Lifelong Learning Plan (LLP)
• Any PRPP contributions made by your employer. For more information, refer to Employer contributions
• Contributions you made to your RRSP used to cancel a withdrawal under the HBP or LLP.

• Any amount directly transferred to your RRSP if you did not receive an information slip or if it is shown in box 35 of your T4RSP or T4RIF slips
• The part of an RRSP withdrawal that you re-contributed to your RRSP and deducted on line 23200. This would have happened if, in error, you withdrew more RRSP funds than necessary to receive past-service benefits under an RPP
• The excess part of a direct transfer of a lump-sum payment from your RPP to an RRSP, a PRPP, an SPP, or a RRIF that you withdrew and are including on line 11500, line 12900, or line 13000 of your income tax and benefit return for 2024 and deducting on line 23200

Lines 7 and 8 – Contributions designated as a repayment under the HBP and the LLP

Temporary repayment relief for HBP

In 2024, a temporary repayment relief was introduced to defer the start of the 15-year repayment period by an additional three years for participants making a first withdrawal between January 1, 2022, and December 31, 2025. Accordingly, the 15-year repayment period would start the fifth year following the year in which a first withdrawal was made.

For example:

• if you made your first withdrawal in 2022, your first year of repayment will be 2027
• if you made your first withdrawal in 2023, your first year of repayment will be 2028
• if you made your first withdrawal in 2024, your first year of repayment will be 2029
• if you are going to make your first withdrawal in 2025, your first year of repayment will be 2030

Where the repayment relief does not apply, the current rule applies. Therefore, if you made your first withdrawal before January 1, 2022, your repayment period started the second year after the year you made your first withdrawal from your RRSPs under the HBP. For example, if you made your first withdrawal in 2020, your first year of repayment was 2022.

If you withdrew funds from your RRSP under the LLP before 2023, you may have to make a repayment for 2024. Your 2024 minimum required repayment is shown on your latest notice of assessment, notice of reassessment, or Form T1028.

If the temporary repayment relief for HBP does not apply to you, to make a repayment for 2024, contribute to your own RRSP, PRPP, or SPP from January 1, 2024, to March 3, 2025, and designate your contribution as a repayment on line 7 or 8 of Schedule 7. You cannot designate contributions that you make to your spouse’s or common-law partner’s RRSP or SPP. Do not include an amount you deducted or designated as a repayment on your 2023 income tax and benefit return or that was refunded to you. Do not send your repayment to the CRA. You cannot deduct any RRSP, PRPP, or SPP contribution you designate as an HBP or an LLP repayment on Schedule 7. To view your HBP or LLP information, go to My Account for Individuals.

Line 15 – Transfers

You may have reported income on line 11500, 12900, or 13000 of your income tax and benefit return for 2024. If you contributed certain types of this income to your own RRSP on or before March 3, 2025, you could deduct this contribution, called a transfer, in addition to any RRSP contribution you make based on your RRSP deduction limit for 2024.

For example, if you received a retiring allowance or severance pay in 2024, you would report it on line 13000 of your income tax and benefit return. You can contribute to your RRSP up to the eligible part of that income (box 66 of your T4 slips or box 47 of your T3 slips) and deduct it as a transfer. Include the amounts you transfer on lines 2 or 3, 24640 and 15 of Schedule 7.

For more information about amounts you can transfer, refer to Chapter 6 – Transfers to registered plans or funds and annuities.

Line 18 – RRSP, PRPP, or SPP contributions you are deducting for 2024

Include on this line amounts that you contributed to your RRSP, PRPP, or SPP, or to your spouse’s or common-law partner’s RRSP or SPP that you will be deducting on your 2024 income tax and benefit return. This amount cannot be more than line 17.

You can carry forward indefinitely any part of your RRSP deduction room accumulated after 1990 that you do not use.

Your RRSP deduction limit for 2024 is shown on your latest notice of assessment, notice of reassessment, or Form T1028, Your RRSP, HBP, LLP, or FHSA information for 2024.

If you do not have your notice of assessment, notice of reassessment, or Form T1028, you can find out your RRSP deduction limit for 2024 by:

• calling 1-800-959-8281
• going to My Account for Individuals. For more information, refer to My Account
• calling the Tax Information Phone Service (TIPS). For more information, refer to Tax Information Phone Service (TIPS).

If you would like to calculate your RRSP deduction limit for 2024, use Chart 3.

Lines 24 to 27 – 2024 withdrawals under the HBP and the LLP

On line 24, enter the total of your HBP withdrawals for 2024 from box 27 of your T4RSP slips. Tick the box at line 25 if the address of the home you acquired with these withdrawals is the same as the address on page 1 of your income tax and benefit return.

On line 26, enter the total of your LLP withdrawals for 2024 from box 25 of your T4RSP slips. Tick the box at line 27 to designate that your spouse or common-law partner was the student for whom the funds were withdrawn. If you do not tick the box, you will be considered to be the student for LLP purposes. You can change the person you designate as the student only on the income tax and benefit return for the year you make your first withdrawal. Refer to Guide RC4112, Lifelong Learning Plan (LLP) for more information about:

• when you have to make your repayments
• what rules apply when the person who made the withdrawal dies, turns 71 years of age, or becomes a non-resident

Line 28 – Contributions to an amateur athlete trust

On line 28, enter the qualifying performance income contributed to an amateur athletic trust in 2024.

Chart 3 – Calculation of your 2024 RRSP deduction limit

The line numbers in brackets refer to the line numbers on your 2023 income tax and benefit return.

Step 1 – Calculating your unused RRSP deduction room at the end of 2023

Step 2 – Calculating your 2023 earned income (include each amount only once in this step) ^{Footnote 3b}

Step 3 – RRSP limit for 2024

Step 4 – Your 2023 pension adjustment (PA)

Step 5 – Your 2024 total pension adjustment reversal (PAR)

Step 6 – Your 2024 net past service pension adjustment (PSPA)

Step 7 – Your 2024 RRSP deduction limit for 2024

Step 8 – Your 2024 unused RRSP deduction room

Unused RRSP, PRPP or SPP contributions

This section applies to you if you did not use all of your RRSP, PRPP, or SPP contributions as a deduction in the year you made them. It does not apply to contributions that were designated as repayments under the HBP or the LLP, or contributions that were used to cancel an LLP or HBP withdrawal. Your unused RRSP, PRPP, and SPP contributions from previous years will be on your RRSP deduction limit and available contribution room statement shown on your latest notice of assessment, notice of reassessment, or Form T1028, Your RRSP, HBP, LLP, or FHSA information for 2024. To report new unused contributions, you have to file Schedule 7, RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities, with your income tax and benefit return. For more information, refer to Keeping track of your RRSP, PRPP, and SPP contributions – Schedule 7.

If you did not deduct all of the contributions you made to your RRSP, PRPP, or SPP, or your spouse’s or common-law partner’s RRSP in 1991 and later years (or your spouse’s or common law partner’s SPP in 2010 and later years), you have two options: you can leave the unused contributions in the plan or you can withdraw them.

Withdrawing the unused contributions

If you withdraw the unused contributions, you have to include them as income on your income tax and benefit return. However, you may be able to deduct an amount equal to the withdrawn contributions that you include in your income, if you or your spouse or common‑law partner received the unused contributions from an RRSP, a PRPP, an SPP, or a RRIF:

• in the year you contributed them
• in the following year
• in the year that you were sent a notice of assessment or notice of reassessment for the year you contributed them, or in the following year

You can deduct the amount if you meet all of the following conditions:

• You have not deducted, for any year, the unused contributions that you made to your RRSP, PRPP, or SPP, or your spouse's or common-law partner's RRSP or SPP.
• You have not designated the withdrawal of the unused RRSP, PRPP, or SPP contributions as a qualifying withdrawal to have your PSPA certified.
• No part of the withdrawn contributions relates to a lump-sum amount from an RPP, a PRPP, an SPP, or certain DPSP amounts, that you transferred directly to an RRSP, a PRPP, or an SPP. For more information, refer to Direct transfer of an RPP lump-sum amount.

In addition, it has to be reasonable for the CRA to consider that at least one of the following applies:

• you reasonably expected to be able to fully deduct the RRSP, PRPP, or SPP contributions for the year you made the contributions or the immediately preceding year
• you did not make the RRSP, PRPP, or SPP contributions intending to withdraw them and deduct an offsetting amount

Withdrawal made using Form T3012A – Tax Deduction Waiver on the Refund of your Unused RRSP, PRPP, or SPP Contributions from your RRSP, PRPP or SPP – If you meet all of the previous conditions and have not already withdrawn the unused RRSP, PRPP, or SPP contributions, you can withdraw them from your RRSP, PRPP, or SPP and not have tax withheld. To do this, fill out Form T3012A, Tax Deduction Waiver on the Refund of your Unused RRSP, PRPP, or SPP Contributions from your RRSP. This form cannot be used to withdraw unused RRSP contributions that were transferred to a RRIF. For more information, refer to Withdrawal made without Form T3012A.

If the unused RRSP, PRPP, or SPP contributions are withdrawn from your RRSP, PRPP, or SPP based on a Form T3012A that the CRA approved, do all the following:

• attach a copy of the approved Form T3012A and the related T4RSP or T4A slip to your income tax and benefit return (if paper filing). If you file electronically, keep the Form T3012A and related slips in case the CRA asks to see them at a later date,
• report all of the following:
  • an amount shown in box 20 of your or your spouse’s or common law partner’s 2024 T4RSP slip, on line 12900 of your income tax and benefit return
  • an amount withdrawn from an SPP and included in box 18 of your or your spouse’s or common-law partner’s 2024 T4A slip, on
    • line 11500 if you are 65 years of age or older on December 31, 2024
    • line 11500 if you are under 65 years of age on December 31, 2024, and you received the amount as a result of the death of your spouse or common-law partner
    • line 13000 in all other cases
  • an amount withdrawn from an PRPP and included in box 194 of your 2024 T4A slip, on line 11500 if you are 65 or older at the end of the year, or on line 13000 otherwise

For more information, refer to Calculating the income you and your spouse or common-law partner have to report

• deduct an amount on line 23200 of your income tax and benefit return equal to the unused contributions withdrawn

Withdrawal made without Form T3012A – If you withdraw unused RRSP, PRPP, or SPP contributions from a RRIF, RRSP, PRPP, or SPP without Form T3012A, the issuer of the plan has to withhold tax. The amount you withdraw should be reported on your income tax and benefit return as follows:

In all cases, claim the tax the issuer withheld on line 43700 of your income tax and benefit return.

Fill out Form T746, Calculating Your Deduction for Refund of Unused RRSP, PRPP, and SPP Contributions, to calculate the amount you can deduct for the withdrawal. For more information about claiming the deduction for the withdrawal of unused RRSP contributions, refer to line 23200.

Tax on RRSP excess contributions

Generally, you have RRSP excess contributions if your unused RRSP, PRPP, and SPP contributions from prior years and your current calendar year contributions are more than your RRSP deduction limit shown on your latest notice of assessment, notice of reassessment, or Form T1028, Your RRSP, HBP, LLP, or FHSA information for 2024, plus $2,000.

Also, you can only qualify for the additional $2,000 amount if you were 18 or older at any time in 2023.

Generally, you have to pay a tax of 1% per month on your unused contributions that exceed your RRSP deduction limit by more than $2,000. Your notice of assessment or notice of reassessment will indicate that you may have to pay a 1% tax on RRSP excess contributions if your unused RRSP, PRPP, or SPP contributions exceed your RRSP deduction limit. For information about contributing to a PRPP, refer to Contributions to a PRPP. You can view your RRSP information online by going to My Account for Individuals.

Follow the six-step process described in Chart 4 to determine if you have to fill out a T1-OVP, 2024 Individual Tax Return for RRSP, PRPP and SPP Excess Contributions, to calculate the amount subject to tax and the tax payable.

If you determine that you have to pay this 1% tax, you have to send your completed T1-OVP return and pay the tax no later than 90 days after the end of the year in which you had the excess contributions.

When you file your return, send documents that identify the exact months of all RRSP, PRPP and SPP contributions and RRSP, PRPP, SPP or RRIF withdrawals you made in 2024. Please note RRSP receipts, T4RSP and T4RIF slips do not contain this information.

If the supporting documents received do not show the exact months of the contributions or withdrawals, the CRA may assess the T1-OVP return based on their records. This means that the CRA would include contributions from the first 60 days of the year in January and include the contributions from the rest of the year in March. As well, the CRA would include the withdrawal(s) in December.

If you would like the CRA to complete the return(s) for you, send the CRA written authorization and the supporting documents mentioned above for the year(s) in question.

Penalty – If you owe tax in a year and do not file your T1-OVP return within 90 days after the end of that year, the CRA will charge you a late-filing penalty. The penalty is 5% of your balance owing, plus 1% of your balance owing for each month that your T1-OVP return is late, to a maximum of 12 months. Your late-filing penalty may be higher if the CRA charged you a late‑filing penalty on your T1-OVP return for any of the three previous years.

Attach your payment to your completed T1-OVP return and submit it to your tax centre. If you do not pay your tax by the deadline, you may also have to pay arrears interest on any unpaid amount.

Interest – If you have a balance owing in a year, the CRA charges compound daily interest starting on the 91st day of the following year on any unpaid amounts owing for that year. This includes any balance owing if the CRA reassesses your T1-OVP return. In addition, the CRA will charge you interest on the penalties indicated in the previous section, starting on that 91st day.

Voluntary disclosure – You may have had to file a previous year T1-OVP return, but you have not sent it, or you sent the CRA an incorrect T1-OVP return. If so, you can voluntarily file or correct that T1-OVP return under the Voluntary Disclosures Program and pay only the taxes owing (plus interest) without penalty.

For more information, and to know if your disclosure qualifies for this program, refer to Information Circular IC00-1R6, Voluntary Disclosures Program.

Be sure to indicate clearly, on any disclosure you make, that you are submitting information under the Voluntary Disclosures Program.

Which return you have to use

• If you have RRSP excess contributions made from January 1, 1991, to December 31, 2024, that are subject to tax, fill out a T1-OVP-S, 2024 Simplified Individual Tax Return for RRSP, PRPP and SPP Excess Contributions, for each applicable tax year.

• If you made mandatory contributions to a group RRSP or a PRPP plan in 2023 or 2024 that are subject to tax, you must fill out a T1-OVP, 2024 Individual Tax Return for RRSP, PRPP and SPP Excess Contributions, for each applicable tax year.

Waiver or cancellation of the RRSP excess contribution tax – If you determined that you must pay a tax on your RRSP excess contributions, you may ask in writing that the CRA waives or cancels the tax if both of the following conditions are met:

• your excess contributions on which the tax is based arose due to a reasonable error
• you are taking, or have taken, reasonable steps to eliminate the excess contributions

To consider your request, the CRA will need you to fill out Form RC2503, Request for Waiver or Cancellation of Part X.1 Tax - RRSP, PRPP and SPP Excess Contribution Tax. Your form should explain:

• why you made excess contributions and why this is a reasonable error
• what steps you are taking, or have taken, to eliminate the excess contributions

Send your completed request and supporting documents that identify the exact months of all your RRSP, PRPP, and SPP contributions and RRSP, PRPP, SPP or RRIF withdrawals for the years involved, as well as any documents that would support the explanation of the reasonable error that caused the excess contribution to the tax center as shown on your notice of assessment or reassessment. Please note that the CRA does not accept the official RRSP receipts or the T4RSP or T4RIF slips for this purpose as they do not contain the exact months of all your contributions or withdrawals.

Form RC2503 can be found at Forms and publications.

For more information on cancellation or waiver of late-filing penalties and interest, refer to Information Circular IC07-1R1, Taxpayer Relief Provisions.

Chart 4 – Do you have to fill out a 2024 T1-OVP return

• If you follow the chart below and arrive at a point where it states, "you do not have to fill out a 2024 T1‑OVP return," you are not subject to the 1% per month tax.
• When you file your return, send documents that identify the exact months of all RRSP, PRPP, and SPP contributions and RRSP, PRPP, SPP or RRIF withdrawals you made in 2024. Please note RRSP receipts, T4RSP and T4RIF slips do not contain this information. If the supporting documents received do not show the exact months of the contributions or withdrawals, the CRA may assess the T1-OVP return based on their records. This means that the CRA would include contributions from the first 60 days of the year in January and include the contributions from the rest of the year in March. As well, the CRA would include the withdrawal(s) in December.
• If your 2024 RRSP deduction limit includes a net PSPA for 2024 or your unused RRSP deduction room at the end of 2023 was a negative amount, fill out a 2024 T1 OVP return to determine if you are subject to the 1% per month tax. If you are not subject to this tax for 2024, you may be subject to it for 2025.
• Your unused RRSP, PRPP and SPP contributions are amounts you contributed to your own RRSP, PRPP or SPP, or to an RRSP or SPP for your spouse or common law partner after 1990, but did not deduct on line 20800 (line 208 for 2018 and prior tax years), of any previous income tax and benefit return, or designate as an HBP or LLP repayment. The total of these amounts is identified on line “Unused RRSP contributions previously reported and available to deduct for 2024" on your 2024 RRSP deduction limit and available contribution room statement. This information can be found on your latest notice of assessment, notice of reassessment, or Form T1028, Your RRSP, HBP, LLP, or FHSA information for 2024. However, if your unused RRSP contributions on line 24500 of your 2024 income tax and benefit return were reduced due to an RRSP withdrawal for which a deduction was claimed at line 23200 using Form T3012A or Form T746, your unused RRSP contributions on your latest notice of assessment, notice of reassessment, or Form T1028, will not be accurate for the purpose of determining if you have to fill out a 2024 T1-OVP return. In this case, you should use the total amount of your unused RRSP, PRPP and SPP contributions prior to the adjustment of this amount based on Form T3012A or Form T746 when following the chart below. You can access your RRSP information online by going to My Account for individuals. You can also call 1-800-959-8281 or the CRA’s Tax Information Phone Service (TIPS) at 1-800-267-6999 to get more information..

Chapter 3 – RRIF contributions

This chapter provides general information about RRIFs and lists the types of property you can contribute to your RRIF. Usually, you can only contribute to your RRIF by directly transferring certain amounts you receive or are considered to have received.

Property from an RRSP, PRPP, or SPP

You can contribute to your RRIF by having property transferred directly from:

• your PRPP, unmatured RRSP, or SPP
• your matured RRSP, including a direct transfer of a commutation payment from your RRSP annuity
• an unmatured RRSP under which your current or former spouse or common-law partner is the annuitant, if you and your current or former spouse or common-law partner were living separate and apart at the time of the transfer and if the transfer is made:
  • under a decree, order, or judgment of a competent tribunal, or under a written separation agreement
  • to settle rights arising out of your relationship on or after the breakdown of your relationship

In addition, you can contribute to your RRIF any amounts that are not more than the eligible part of the designated amount, you receive or are considered to have received from a deceased annuitant's or member's RRSP, PRPP, or SPP in the following situations:

• the annuitant or member under an RRSP, PRPP, or SPP dies and, at the time of death, you were the deceased annuitant's or member's spouse or common-law partner
• you were a financially dependent child or grandchild of the deceased annuitant who depended on the annuitant because of an impairment in physical or mental functions

For more information, refer to Information Sheet RC4177, Death of an RRSP Annuitant, or Form T2019, Death of an RRSP Annuitant – Refund of Premiums.

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
• your 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 competent tribunal, or under a written separation agreement
  • to settle rights arising out of your relationship on or after the breakdown of your relationship

DPSP amounts

You will be able to contribute to your RRIF by directly transferring a lump-sum amount from:

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

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

Property from another RRIF

You can contribute to your RRIF by directly transferring property from:

• another RRIF under which you are the annuitant
• a RRIF under which your current or former spouse or common-law partner is the annuitant, if the transfer is made under the following conditions:
  • under a decree, order, or judgment of a competent tribunal, or under a written separation agreement
  • to settle rights arising out of your relationship on or after the breakdown of your relationship

In addition, you can contribute to your RRIF any amount up to the eligible amount of the designated benefit you receive or are considered to have received from the deceased annuitant's RRIF in either of the following situations:

• the annuitant under a RRIF dies and, at the time of death, you were the deceased annuitant's spouse or common-law partner
• you were a financially dependent child or grandchild of the deceased annuitant who depended on the annuitant because of an impairment in physical or mental functions

For more information, refer to Information Sheet RC4178, Death of a RRIF Annuitant, PRPP Member, or ALDA Annuitant, or Form T1090, Joint Designation on the Death of a RRIF Annuitant, PRPP Member, or ALDA Annuitant.

Specified pension plan (SPP) amounts

If you are a member of an SPP, you can contribute to your RRIF by directly transferring a lump-sum amount from an SPP.

You can also transfer a lump-sum amount from an SPP if you are entitled to it because your current or former spouse or common-law partner was a member of an SPP, and one of the following situations applies:

• your current or former spouse or common-law partner has died
• you and your current or former spouse or common-law partner are living separate and apart at the time of the transfer, and you are entitled to receive the lump-sum:
  • under a decree, order, or judgment of a competent tribunal, or under a written separation agreement
  • to settle rights arising out of your relationship on or after the breakdown of your relationship

For more information on transfers, refer to Chapter 6 – Transfers to registered plans or funds and annuities.

Property from an FHSA

If you are an FHSA holder, you can contribute to your RRIF by directly transferring property from your FHSAs.

You can also transfer property from an FHSA if you are entitled to it because your current or former spouse or common-law partner was an FHSA holder, and one of the following situations applies:

• your spouse or common-law partner has died and you were a spouse or common-law partner of the holder immediately before the death
• you are entitled to receive the property from the FHSA under a decree, order, or judgment of a competent tribunal or under a written agreement relating to a division of property, in settlement of rights arising from the breakdown of your marriage or common-law partnership

For more information on transfers, go to Chapter 6 – Transfers to registered plans or funds and annuities.

For more information on FHSAs, go to First Home Savings Account (FHSA).

Chapter 4 – Anti-avoidance rules for RRSPs and RRIFs

The anti-avoidance rules provide for a special tax on certain advantages that unduly exploit the tax attributes of an RRSP and RRIF as well as special taxes on prohibited investments and on non-qualified investments.

Tax payable on prohibited investments

If the RRSP or RRIF trust acquires a prohibited investment or if previously acquired property becomes prohibited, the annuitant will be subject to a special tax equal to 50% of the fair market value (FMV) of the investment, and the annuitant must file Form RC339, Individual Return for Certain Taxes for RRSPs, RRIFs, RESPs or RDSPs, with a payment for any balance due, no later than June 30 following the end of the calendar year.

The tax is refundable in certain circumstances. For more information, refer to Refund of taxes paid on non-qualified or prohibited investments.

When the prohibited investment ceases to be a prohibited investment while it is held by the RRSP or RRIF trust, the trust is considered to have disposed of the property at its FMV right before that time and to have re-acquired the property for the same amount at the same time.

The annuitant is also liable for the 100% advantage tax on income earned and capital gains realized on prohibited investments.

The 100% advantage tax applies to income earned, and the portion of any realized capital gain that accrued, regardless of when the prohibited investment generating the income or gain was acquired.

For more information, refer to Income Tax Folio S3-F10-C2, Prohibited Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs.

Tax payable on non-qualified investments

If the RRSP or RRIF trust acquired a non-qualified investment, or if a previously acquired property becomes a non-qualified investment, the investment will be subject to a special tax. The tax is equal to 50% of the FMV of the property at the time that it was acquired or that it became non-qualified, and the annuitant must file Form RC339, Individual Return for Certain Taxes for RRSPs, RRIFs, RESPs or RDSPs, with a payment for any balance due, no later than June 30 following the end of the calendar year.

The tax payable on non-qualified investments is refundable in certain circumstances. For more information, refer to Refund of taxes paid on non-qualified or prohibited investments.

The annuitant is also liable for the 100% advantage tax on specified non-qualified investment income if this income is not withdrawn promptly.

For more information, refer to Income Tax Folio S3-F10-C2, Prohibited Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs. For more information on acceptable investments, refer to Income Tax Folio S3-F10-C1, Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs.

Refund of taxes paid on non-qualified or prohibited investments

You may be entitled to a refund of the 50% tax on non-qualified or prohibited investments if the investment was disposed of, or ceased to be a non-qualified or prohibited investment, before the end of the calendar year after the year in which the tax arose (or such later time as is permitted by the Minister of National Revenue).

However, no refund will be issued if it is reasonable to expect that you knew, or should have known, that the investment was or would become a non-qualified or a prohibited investment.

The refund applies to the 50% tax on non-qualified or prohibited investments, but not to the 100% tax on advantages.

How to claim a refund

To claim a refund, you must:

• send your request in writing
• attach the appropriate documents detailing the information relating to the acquisition and disposition of the non-qualified or prohibited property (you can attach the written request and supporting documents to Form RC339)

The documents must contain all the following:

• name and description of the property
• number of shares or units
• date the property was acquired or became non-qualified or prohibited property
• date of the disposition or the date that the property became qualified or ceased to be prohibited

Obligations of the RRSP issuer or RRIF carrier

The issuer of an RRSP or carrier of a RRIF must exercise the care, diligence, and skill of a reasonably prudent person to minimize the possibility that a trust governed by the plan holds a non-qualified investment.

If the issuer or carrier fails to comply with this obligation, the issuer or carrier is liable to a penalty under the Income Tax Act.

The issuer or carrier is also required to notify the annuitant of the RRSP or RRIF, in prescribed form and manner before March of a calendar year, if, at any time in the preceding year, the RRSP or RRIF trust acquired or disposed of a non-qualified investment, or if an investment became or ceased to be a non-qualified investment.

Tax payable on an advantage

If the annuitant or a person not dealing at arm's length with the annuitant (including the annuitant's RRSP or RRIF) was provided with an advantage in relation to their RRSP or RRIF during the year, a 100% tax is payable, which is:

• in the case of a benefit, the FMV of the benefit
• in the case of a loan or a debt, the amount of the loan or debt
• in the case of a registered plan strip, the amount of the registered plan strip

For taxes payable on an advantage, you must file using Form RC339, Individual Return for Certain Taxes for RRSPs, RRIFs, RESPs or RDSPs, with a payment for any balance due, no later than June 30 following the end of the calendar year.

For more information, refer to Income Tax Folio S3-F10-C3, Advantages – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs.

Waiver or cancellation of tax

The CRA may waive or cancel all or part of the taxes if the CRA determines it is fair to do so after reviewing all factors, including whether:

• the tax arose because of a reasonable error
• the extent to which the transaction or series of transactions that gave rise to the tax also gave rise to another tax under the Income Tax Act
• the extent to which payments have been made from the person's registered plan

The waiver is limited to tax paid under the anti-avoidance rules and not taxes paid under any other part of the Income Tax Act.

To consider your request, the CRA needs a letter that explains why the tax liability arose, and why it would be fair to cancel or waive all or part of the tax. Send your letter to one of the following addresses:

If your residential address is in Ontario, Prince Edward Island, Newfoundland and Labrador, Yukon, Nunavut, Northwest Territories, and in the following cities in the province of Quebec; Montréal, Québec City, Laval, Sherbrooke, Gatineau, and Longueuil, send your request to:

Canada Revenue Agency
Sudbury Tax Centre
Pension Workflow Team
Post Office Box 20000, Station A
Sudbury, ON P3A 5C1

If your residential address is in Manitoba, Alberta, Saskatchewan, British Columbia, Nova Scotia, New Brunswick, and the remaining areas in the province of Quebec not listed under the Sudbury Tax Centre, send your request to:

Canada Revenue Agency
Winnipeg Tax Centre
Pension Workflow Team
Post Office Box 14000, Station Main
Winnipeg, MB R3C 3M2

Chapter 5 – Amounts from an RRSP or a RRIF

If you have an RRSP or a RRIF, you probably have a certain amount of flexibility on the types of payments you can get from these plans.

Generally, an RRSP must mature by the last day of the year in which you turn 71. On maturity, the funds must be withdrawn, transferred to a RRIF, or used to purchase an annuity. There are no immediate tax implications when amounts are transferred to a RRIF or used to purchase an annuity. However, if you withdraw funds from your RRSP, tax will be withheld, and the amount withdrawn has to be included in your income for the year it is withdrawn.

Sometimes there can be an increase in the FMV of an RRSP, PRPP, or RRIF between the date of death and the date of final distribution to the beneficiary or estate. Generally, this amount has to be included in the income of the beneficiary or the estate for the year it is received. A T4RSP slip or T4RIF slip may be issued for this amount.

Sometimes, the FMV of the property of an unmatured RRSP, PRPP, or RRIF can decrease between the date of death and the date of final distribution to the beneficiary or the estate. If the total of all the amounts paid from an unmatured RRSP, PRPP, or RRIF is less than the FMV of the unmatured RRSP, PRPP, or RRIF at the time of the annuitant's death, a deduction may be claimed on the final income tax and benefit return of the annuitant.

The deductible amount will generally be calculated as the difference between:

• the FMV at the time of the death that was included in the deceased annuitant's income for the year of death
• the total of all the amounts paid from the unmatured RRSP or RRIF

This rule applies where the final distribution from the unmatured RRSP or the RRIF occurs after 2008. For more information, refer to Chart 6 and Chart 7.

Yearly minimum amount from a RRIF

Starting in the year after the year you establish a RRIF, you have to be paid a yearly minimum amount. The payout period under your RRIF is for your entire life. Your carrier calculates the minimum amount based on your age at the beginning of each year. However, you can elect to have the payment based on your spouse’s or common-law partner's age.

You can withdraw more, but not less than the minimum.

The following charts contain information on amounts you can receive or that the CRA considers you to receive from your RRSP or RRIF, or from a deceased individual's RRSP or RRIF. This chapter also provides information on spousal or common-law partner RRSPs and RRIFs.

Chart 5 – Amounts from your RRSP, PRPP, RRIF, or SPP

Chart 6 – Amounts from a deceased annuitant’s RRSP

• In all cases, tax will not be withheld. Report the amount on line 12900 of the income tax and benefit return.
• You can rollover the proceeds of a deceased annuitant’s RRSP or RRIF, or a deceased member’s RPP, PRPP or SPP to the RDSP of a financially dependent infirm child or grandchild. For more information, refer to Transfers to registered disability savings plans.
• Refer to Death of a PRPP member for more information about amounts from a deceased members’ PRPP. For more information on amounts from a deceased member’s SPP, contact the SPP administrator.

Chart 7 – Amounts from a deceased annuitant's RRIF

• In all cases, tax will not be withheld
• If you received the amounts because your spouse or common law partner died, report these amounts on line 11500 of your income tax and benefit return. In all other cases, report the amounts on line 13000 of your income tax and benefit return

Transfers to registered disability savings plans

A deceased individual's RRSP and PRPP proceeds can be rolled over to the RDSP of the deceased individual's financially dependent child or grandchild with an impairment in physical or mental functions. This also applies for RRIF proceeds, certain lump-sum amounts paid from RPPs, and certain amounts from SPPs.

Eligible individual – An eligible individual is a child or grandchild of a deceased annuitant under an RRSP, a RRIF, or of a deceased member of an RPP, PRPP, or SPP, who was financially dependent on the deceased for support at the time of the deceased's death by reason of an impairment in physical or mental functions. The eligible individual must also be the beneficiary under the RDSP into which the eligible proceeds will be paid.

For more information on the RDSP, go to Registered disability savings plan (RDSP).

The following chart shows what you have to do when there is a rollover to an RDSP. Use Form RC4625, Rollover to a Registered Disability Savings Plan (RDSP) Under Paragraph 60(m), or the form provided by your RDSP issuers to document the transaction.

RDSP Rollover

Locked-in RRSP

A locked-in RRSP is a plan containing funds transferred from an RPP for a member of the RPP. Under the pension laws of certain provinces, locked-in RRSPs are sometimes called "locked-in retirement accounts (LIRAs)". This means that the member cannot receive the transferred funds. They either have to stay in the plan or be transferred to another locked-in RRSP to provide the member with a retirement income.

You cannot withdraw funds from a locked-in RRSP. The money has to stay in the RRSP and will be used to buy a life annuity at retirement age.

However, under the pension laws of certain provinces, pension funds or funds from a locked-in RRSP can be transferred to a locked-in RRIF. These locked-in RRIFs are sometimes called life income funds or locked-in retirement income funds.

Your employer or pension plan administrator can answer any questions you have about locked-in funds.

Amounts paid from or into a spousal or common-law partner RRSP, RRIF, or SPP

This section applies to you if:

• you receive income from a spousal or common-law partner RRSP or RRIF
• you receive income from an SPP account to which your spouse or common-law partner contributed
• you have contributed to your spouse’s or common law partner’s RRSP or SPP

A spousal or common-law partner RRSP is any of your RRSPs:

• to which your spouse or common-law partner contributed
• that received amounts or transfers of property from your RRSPs to which your spouse or common-law partner had contributed
• that received amounts or transfers of property from your RRIFs to which you had transferred amounts from your spousal or common-law partner RRSPs

A spousal or common-law partner RRIF is any of your RRIFs that received amounts or transfers of property from:

• a spousal or common-law partner RRSP
• any of your other spousal or common-law partner RRIFs

Calculating the income you and your spouse or common-law partner have to report

If you contributed to your spouse’s or common law partner’s RRSPs or your spouse’s account under an SPP in 2022, 2023, or 2024, you may have to include in your 2024 income all or part of:

• amounts your spouse or common‑law partner received in 2024 from any of their unmatured spousal or common‑law partner RRSPs
• commutation payments your spouse or common‑law partner received in 2024 from any of their matured spousal or common‑law partner RRSPs, or spousal or common-law partner SPP
• amounts the CRA considers your spouse or common‑law partner to have received in 2024 in respect of any of their deregistered spousal or common‑law partner RRSPs or SPP
• amounts your spouse or common‑law partner received, or those the CRA considers they received, in 2024 from any of their spousal or common‑law partner RRIFs that are more than the minimum amount for the year
• amounts your spouse or common-law partner transferred from their spousal or common-law partner RRSPs to their FHSAs that are deemed to be a taxable withdrawal from their spousal or common-law partner RRSPs

To determine the amount to include in your income or your spouse’s or common‑law partner’s income, your spouse or common‑law partner (the annuitant) should fill out Form T2205, Amounts from a Spousal or Common‑law Partner RRSP, RRIF or SPP to Include in Income and follow the instructions on the form.

Exceptions – The rule that requires you, the contributor, to include certain amounts from spousal or common-law partner RRSPs, spousal or common-law partner RRIFs, or a spouse's account under an SPP as income does not apply to the following situations:

• at the time of payment, or when the CRA considers the payment to have been received, you and your spouse or common-law partner were living separate and apart because of the breakdown of your relationship
• at the time of payment, or when the CRA considers the payment to have been received, you or your spouse or common-law partner were non-residents of Canada
• the amount is a commutation payment that is transferred directly for your spouse or common-law partner to another RRSP, a RRIF, an SPP, or to an issuer to buy an eligible annuity that cannot be commuted for at least three years
• the contributor dies in the year of payment or the year the CRA considers the payment to have been received
• the CRA considers the deceased annuitant to have received the amount because of death

In any such case, the annuitant spouse or common-law partner includes the payment in income for the year they receive it or is considered to have received it.

Tax deducted – In all cases, the tax deducted has to be claimed by the individual to whom the slip is issued. In most cases, the information slip issued for the withdrawal will be in the name of the annuitant. However, report the income according to the calculations completed in Parts 1 and 2 of Form T2205, Amounts from a Spousal or Common-law Partner RRSP, RRIF or SPP to Include in Income.

For more information, refer to archived Interpretation Bulletin IT-307, Spousal or Common-Law Partner Registered Retirement Savings Plans.

Chapter 6 – Transfers to registered plans or funds and annuities

You can transfer certain amounts to an RPP, an RRSP, a RRIF, a DPSP, an SPP, a PRPP, or an FHSA You can also use certain amounts from an RPP, an RRSP, a RRIF, an SPP or a PRPP to buy yourself an eligible annuity.

You have to transfer certain amounts directly. For other amounts, you can transfer them either directly or indirectly. This chapter provides information about the rules on these transfers.

The three charts in this chapter list the most common types of amounts that you can transfer and the types of plans or funds to which you can transfer them.

Chart 8 covers amounts that you can transfer either directly or indirectly. Chart 9 covers amounts that you have to transfer directly. Chart 10 covers amounts that you transfer because of the breakdown of your marriage or common-law partnership.

Other transfers

Depending on the source of income, the following amounts can also be transferred to your RPP, SPP, PRPP, or RRSP:

• certain lump-sum amounts from a non-registered pension plan that relate to services rendered throughout a period while a non-resident of Canada
• eligible pension income from an estate or a testamentary trust
• amounts received from foreign retirement arrangements, such as United States Individual Retirement Accounts (IRAs)

For more information on these types of transfers, refer to archived Interpretation Bulletin IT-528, Transfers of Funds Between Registered Plans.

Chart 8 – Amounts that you can transfer directly or indirectly

• To deduct an amount, you have to make the contributions to a plan or fund in the year you receive the amount or no later than 60 days after the end of that year.
• If you transfer the amount to your RRSP, you must be 71 years of age or younger at the end of the year you transfer the funds. You also have to fill out Schedule 7, RRSP, PRPP and SPP Contributions and Transfers, and HBP and LLP Activities, and file it with your 2024 income tax and benefit return. If you need a Schedule 7, go to Forms and publications or call 1-800-959-8281.

Chart 9 – Amounts that you have to transfer directly

• If you receive any of the types of amounts listed below (for example, in cash or by cheque), you have to include them in your income for the year you receive them and you cannot transfer them on a tax-deferred basis. Instead, if you want to transfer these amounts to another registered plan or fund and defer the tax, make sure you inform the payer to transfer them directly.
• If you transfer the amount to your RRSP, you must be 71 or younger at the end of the year in which you transfer the funds.
• You do not have to use the forms listed in this chart. The institution that transfers your amounts may use other types of documents to record the transfer. The institution has to provide you with confirmation of the details of the transfer.

Chart 10 – Transferring amounts received because of a breakdown of the marriage or common-law partnership

• In all cases, the transfer must be direct. If you receive any of the types of amounts listed below (for example, in cash or by cheque), you have to include them in your income for the year you receive them and you cannot transfer them tax-free. Instead, if you want to transfer these amounts tax-free to another registered plan or fund, make sure you inform the payer to transfer them directly.
• In all cases, you must be entitled to the amount under a decree, order, or judgment of a competent tribunal, or under a written agreement relating to a division of property between you and your current or former spouse or common-law partner in settlement of rights arising from the breakdown of your relationship.
• If you transfer the amount to your RRSPs, you must be 71 or younger at the end of the year you transfer the funds.

Direct transfer of an RPP lump-sum amount

In most cases, if you transfer an RPP lump-sum amount directly to another RPP, SPP, RRSP, PRPP, or to a RRIF, you do not have to include any part of the amount in your income, and you cannot deduct it. However, the Income Tax Act limits the amount you may transfer on a tax-deferred basis from a defined benefit provision of an RPP to a money purchase provision of an RPP, an RRSP, a PRPP, an SPP, or a RRIF.

Excess transfer of an RPP lump-sum amount

If the amount you transfer is more than the limit, you have to include the excess transfer in your income. The T4A slip shows the excess transfer as pension income in boxes 018 and 108, which you report on line 13000 of your income tax and benefit return. You can view your T4A and other tax information slips online by going to My Account for Individuals.

If you made the excess transfer to your RRSP, PRPP, or SPP for 2024, the CRA considers you to have contributed it in the year in which you transferred it. Even if the excess transfer is made to your RRIF, the CRA still considers you to have contributed it to your RRSP, PRPP, or SPP. In both cases, the issuer, carrier, or administrator will give you an RRSP, a PRPP, or an SPP receipt for this contribution.

You can deduct these RRSP, PRPP, or SPP contributions on line 20800 of your income tax and benefit return, up to your RRSP deduction limit for the year in which you made the transfer. If you cannot deduct the contributions because they are more than your RRSP deduction limit for the year, you can leave them in your RRSP, PRPP, SPP, or RRIF and deduct them for future years up to your RRSP deduction limit for those years. You can view your RRSP information online by going to My Account for Individuals.

Withdrawal from an RRSP or a RRIF – If you withdraw an excess transfer amount from an RRSP or a RRIF in 2024, and the CRA considers you to have contributed an excess transfer to your RRSP, a deduction is available if you meet both of the following conditions:

• you did not previously deduct the excess amount as an RRSP contribution
• you included the excess amount in your income for the year you received it

You can use Form T1043, Deduction for Excess Registered Pension Plan Transfers You Withdrew from an RRSP, PRPP, SPP or RRIF, to calculate your deduction. Deduct the amount on line 23200 of your income tax and benefit return.

Transfers from an FHSA to an RRSP or RRIF when you have an excess FHSA amount

If you have an excess FHSA amount at the time of the transfer and you transfer property from your FHSA to your RRSP or RRIF, any portion of the amount transferred that exceeds the total fair market value (FMV) of all the property held in all of your FHSAs at the time of the transfer minus the excess FHSA amount at the time of the transfer, will be treated as both:

• a taxable withdrawal from your FHSA
• a new RRSP contribution at the time of the transfer to your RRSP or RRIF

The new RRSP contribution would reduce your unused RRSP deduction room and could result in RRSP excess contributions in certain cases.

For more information, go to Transfers into your FHSAs.

Chapter 7 – PAs, PARs, and PSPAs

Pension adjustments (PAs)

The following is an overview of PAs under RPPs and DPSPs. If you want to know how your PA is calculated or why you have a PA, contact your employer or plan administrator.

Your PA for a year is the total pension credits for the year under a DPSP or a defined benefit or money purchase provision of an RPP of which you are a member. You may also have a pension credit if you participate in a foreign plan. The pension credit is a measure of the value of the benefits that accrued to you during the year under these arrangements.

Does your employer have to report a PA for you

Your employer usually has to report a PA for you even if your benefit is not yet vested.

Where is your PA shown on your T4 or T4A slip

Your PA appears in box 52 of your T4 slip, or in box 034 of your T4A slip. If you worked for more than one employer in 2024 and each employer sponsors their own RPP or DPSP, you may have more than one PA. Enter the total of your PAs from your T4 and T4A slips on line 20600 of your 2024 income tax and benefit return.

You can view your T4, T4A, and other tax information slips online by going to My Account for Individuals.

What does your PA affect

Your PA for a year reduces your RRSP deduction limit for the following year. Your PA does not affect your income. If you contribute to your RRSP, PRPP, or SPP, or your spouse’s or common-law partner’s RRSP or SPP, your PA may indirectly affect the income taxes you pay or the refund you receive for the following year, because it reduces your RRSP deduction limit for the following year.

For more information on how to calculate your RRSP deduction limit, refer to Calculating your 2024 RRSP deduction limit.

You can find your 2024 RRSP deduction limit on your latest notice of assessment or notice of reassessment. If you receive a certified Form T1004, Applying for the Certification of a Provisional PSPA, after the CRA sends you your notice, the CRA may reduce your 2023 RRSP deduction limit. In such a case, the CRA will usually send you Form T1028, Your RRSP, HBP, LLP, or FHSA information for 2024, and give you your revised 2024 RRSP deduction limit when the CRA has updated the CRA's records.

You can also find out your RRSP deduction limit by:

• calling 1-800-959-8281
• going to My Account for Individuals
• calling the CRA's Tax Information Phone Service (TIPS) at 1-800-267-6999.

If you participate in a foreign plan, you may have to report an amount similar to a PA that will reduce your RRSP deduction limit for the following year. To determine the amount you have to report, call the International Enquiries for Individuals and Trusts at one of the following numbers: 1-800-959-8281 (from Canada and the United States), or 613-940-8495 (from outside Canada and the United States). The CRA only accepts collect calls made through telephone operators. After your call is accepted by an automated response, you may hear a beep and notice a normal connection delay.

For more information concerning PAs, refer to Guide T4084, Pension Adjustment Guide.

Pension adjustment reversals (PARs)

A PAR restores your RRSP deduction limit when you end your membership in an RPP or a DPSP in certain circumstances. Your plan administrator or trustee will report a PAR for you if the amount you receive from the plan is less than the total PAs and PSPAs that were previously reported for you.

You will only have a PAR under a DPSP or a money purchase provision of an RPP if you are not fully vested at termination.

Your plan administrator or trustee will send you a T10, Pension Adjustment Reversal (PAR) or Pension Adjustment Correction (PAC), that shows your PAR amount in box 2. Do not report this amount on your income tax and benefit return. Your plan administrator or trustee will send the CRA a copy of your T10 slip. The CRA uses that copy to increase your RRSP deduction limit for the year.

If you have a PAR for a termination in 2024, it increases your 2024 RRSP deduction limit. In such a case, the CRA will usually send you Form T1028, Your RRSP, HBP, LLP, or FHSA information for 2024, and give you your revised 2024 RRSP deduction limit when the CRA has updated the CRA's records.

For more information on PAR, refer to Guide RC4137, Pension Adjustment Reversal Guide.

If you do not receive Form T1028 and you want to confirm your 2024 RRSP deduction limit:

• call 1-800-959-8281
• go to My Account for Individuals
• call the CRA's Tax Information Phone Service (TIPS) at 1-800-267-6999.

The TIPS RRSP service is available from June to the end of April. For RRSP information, you will be asked to provide your social insurance number, your month and year of birth, and the total income you reported on line 15000 of your 2023 income tax and benefit return.

Past service pension adjustments (PSPAs)

The following is an overview of PSPAs. If you have questions about how your PSPA is calculated or why you have a PSPA, contact your employer or plan administrator.

A PSPA is an amount your RPP administrator calculates when benefits relating to a previous period of pensionable service are improved or when you are credited with a new period of pensionable past service. A PSPA only occurs if the improved benefits or the new past service benefits relate to a period of service after 1989. A PSPA is the sum of the additional pension credits that would have been included in your PA if the upgraded benefits had actually been provided, or if the additional service was credited in those previous years.

Types of PSPAs

The plan administrator calculates your PSPA and determines whether the CRA has to certify the PSPA before the RPP can provide the past service benefits. There are two types of PSPAs: certifiable PSPAs, and PSPAs that are exempt from certification (exempt PSPAs). In most cases, the plan administrator has to report each PSPA to the CRA, whether exempt or certifiable.

Exempt PSPAs – An exempt PSPA usually occurs when all or almost all plan members receive past service benefit upgrades. In most cases, when an employer provides past service benefits and there is an exempt PSPA that is more than zero, the plan administrator has to report the PSPA to the CRA and to the plan member. For exempt PSPAs, the plan administrator has to fill out a T215 slip, Past Service Pension Adjustment (PSPA) Exempt from Certification or Permitted Corrective Contribution (PCC). Do not attach the T215 slip to your income tax and benefit return.

An exempt PSPA will not reduce your RRSP deduction limit until the year following the year of the past service event. For details on how to calculate your RRSP deduction limit, refer to Calculating your 2024 RRSP deduction limit. You can view your RRSP information online by going to My Account for Individuals.

Certifiable PSPAs – A certifiable PSPA usually occurs if you, as a plan member, decide to buy a period of past service that is pensionable service under your RPP.

The CRA has to certify most PSPAs that are more than zero and do not meet the conditions for exemption outlined above. The CRA has to certify the PSPA before you have the right to receive the benefits under the plan. A certified PSPA will reduce your RRSP deduction limit for the year in which it is certified.

Your plan administrator applies for PSPA certification by sending a completed Form T1004, Applying for the Certification of a Provisional PSPA. Since the Income Tax Act has limits on the PSPA amount for past service benefits that the CRA can certify, the CRA will apply these limits to the information on Form T1004, Applying for the Certification of a Provisional PSPA and determine if the CRA can certify the PSPA.

Cost of past service benefits

The amount it costs you to pay for past service benefits will likely not equal the PSPA associated with the benefits, since a PSPA reflects a general measure of the value of the past service benefits rather than the actual cost to fund the benefits.

Usually, you can pay for the cost of past service benefits by:

• making a lump-sum contribution
• making instalment contributions
• directly transferring amounts from certain other registered plans. In this case, transfers may reduce the PSPA amount your plan administrator has to report to the CRA

In some cases, your employer may fund all or part of the cost of the past service benefits.

Qualifying transfers – Generally, a qualifying transfer is a direct transfer of a lump-sum amount from an unmatured RRSP, an SPP, a DPSP, or a money purchase provision of an RPP. You can make a qualifying transfer to pay for all or part of the cost of the past service benefits related to the PSPA. If you make a qualifying transfer, the amount you transfer will reduce the PSPA amount the plan administrator has to report. Do not report your qualifying transfer amount as income and do not deduct it.

What happens if the CRA cannot certify your PSPA

If the CRA cannot certify your PSPA because the PSPA amount is more than the allowable limit, you may still be able to get certification if you agree to make a qualifying RRSP, PRPP, or SPP withdrawal. The CRA will send you letter, along with Form T1006, Designating an RRSP, a PRPP or an SPP Withdrawal as a Qualifying Withdrawal. Withdraw the qualifying withdrawal amount, as indicated on the letter and send the CRA one copy of the filled out Form T1006 (with Part 4 completed by the financial institution) and send the CRA proof that the funds were removed (such as an account transaction statement showing that the funds were removed from the plan) within 30 days of the date of the letter.

To speed up the certification process, your plan administrator can review the certification formula before sending Form T1004 to the CRA. If your plan administrator knows that the CRA will not certify the PSPA, the administrator may ask you in advance if you want to designate an RRSP qualifying withdrawal. If you choose to do so, the administrator may ask you to fill out Form T1006 and will send it to the CRA with the certification request. If you cannot or choose not to make an RRSP qualifying withdrawal, the CRA will not certify the PSPA.

If you choose not to proceed with Form T1006, you have the following options:

• make a qualifying transfer, which will have the effect of reducing the amount of the PSPA
• buy the amount of service that the unused RRSP deduction room plus the additional $8,000 (allowance for a shortfall) could purchase
• wait and buy back the service at a later date when you have sufficient unused RRSP deduction room

If you choose to proceed with any of the above three options, call the CRA officer indicated in your letter to advise them of your decision. They will return the Form T1004 to your plan administrator as denied.

For more information, refer to "PSPAs requiring certification," in section 5.4 of Guide T4104, Past Service Pension Adjustment Guide.

Qualifying withdrawal – Generally, a qualifying withdrawal is an amount you withdraw from your RRSP, PRPP, or SPP and include in your income for the year you withdraw the amount. You have to meet a number of conditions before the CRA will consider the amount to be a qualifying withdrawal. If you meet these conditions, you can designate the withdrawal and the CRA can certify the PSPA. The CRA outlines these conditions in Part 3 of Form T1006, which you use to designate a qualifying withdrawal.

Net PSPA

Your net PSPA for 2024 reduces the amount of RRSP contributions you can deduct for 2024. Your 2024 net PSPA is the total of:

• your exempt PSPAs and PCCs for 2023 (total from box 2 of your T215 slips)

plus

• your certified PSPAs for 2024 (Form T1004, Part 3, line A)

minus

• your RRSP qualifying withdrawals (Form T1006, Part 3)

Your RRSP deduction limit may be reduced by the net PSPA or similar amount for the year if you participated in a foreign plan or specified retirement arrangement and your past service benefits accruing under the plan were improved.

For more information, refer to Guide T4104, Past Service Pension Adjustment Guide.

The RRSP deduction claimed on a Section 216 return will not reduce your RRSP deduction limit for the following year. To correct your RRSP deduction limit, the CRA will have to process an administrative Form T215.

Similar to exempt and certifiable PSPAs, an administrative Form T215 will reduce your RRSP deduction limit for the current calendar year. Once the administrative Form T215 is processed on your account, the amount of RRSP deduction claimed on your Section 216 return will show as a net PSPA on your Form T1028.

Generally, the CRA sends Form T1028 with a new RRSP deduction limit if your RRSP deduction limit has changed for reasons other than a reassessment of a previous year’s income tax return.

If you do not receive Form T1028 and you want to confirm your 2024 RRSP deduction limit:

• call 1-800-959-8281
• go to My Account for Individuals
• call our Tax Information Phone Service (TIPS) at 1-800-267-6999.

The TIPS RRSP service is available from June to the end of April. For RRSP information, you will be asked to provide your social insurance number, your month and year of birth, and the total income you reported on line 15000 of your 2023 income tax and benefit return.

Chapter 8 – Pooled registered pension plan (PRPP)

A PRPP is a retirement savings option for individuals, including self-employed individuals.

A PRPP enables its members to benefit from lower administration costs that result from participating in a large pooled pension plan. It's also portable, so it moves with its members from job to job.

This chapter has general information about participating in and contributing to a PRPP. It provides information about who is eligible to join, how to transfer funds on a tax-deferred basis, and what you can deduct on your income tax and benefit return. For more information, go to The Pooled Registered Pension Plan (PRPP).

Eligibility

If you have a valid Canadian social insurance number (SIN), you can participate in a PRPP if any of the following conditions apply. You:

• are employed or self-employed in the Nunavut, Yukon, or Northwest Territories
• work in a federally regulated business or industry for an employer who chooses to participate in a PRPP
• live in a province that has the required provincial standards legislation in place

Participation

You can be enrolled into a PRPP by either of the following:

• your employer (if your employer chooses to participate in a PRPP)
• a PRPP administrator (such as a bank or insurance company)

Once you are enrolled, a PRPP account is created under your SIN. You choose the amounts to be contributed from your pay cheque. Your contributions, your employers’ contributions, and any lump-sum contributions, are all pooled together and credited to your account.

The amount you can contribute is limited by your RRSP deduction limit.

The amount that can be contributed is calculated based on the earned income you report on your income tax and benefit returns from prior years. It is important to file an income tax and benefit return each year when participating in the PRPP to keep your RRSP deduction limit up-to-date.

Contributions to a PRPP

Similar to RRSPs, the maximum amount that you and your employer can both contribute to a PRPP in a given tax year without tax implications is determined by your RRSP deduction limit that appears on your latest notice of assessment or notice of reassessment, or on a Form T1028, Your RRSP, HBP, LLP, or FHSA information for 2024. You can also find out your 2024 RRSP deduction limit by:

• calling 1-800-959-8281
• going to My Account for Individuals
• calling the CRA's Tax Information Phone Service (TIPS) at 1-800-267-6999.

Any PRPP contributions you make that are not deducted on your income tax and benefit return are referred to as unused PRPP contributions.

It is important for you to keep track of your RRSP, PRPP, and SPP contributions.

For more information, refer to Keeping track of your RRSP, PRPP, and SPP contributions – Schedule 7.

Employer PRPP contributions, combined with your PRPP, SPP, and RRSP contributions, as well as contributions to your spouse’s or common-law partner’s RRSP or SPP that are above your RRSP deduction limit, may be considered excess contributions. Combined contributions that are more than your RRSP deduction limit may be subject to a tax of 1% per month for every month they are left in the account. If you withdraw the unused contributions from your PRPP, you can claim an offsetting deduction. For more information, refer to Withdrawing the unused contributions.

Member contributions

You can make voluntary contributions to your PRPP between January 1 in a given year and 60 days into the following year, up until the end of the year in which you turn 71.

You can deduct your contributions on your income tax and benefit return but your deduction must not be more than the difference between your RRSP deduction limit and the employer’s contributions to your PRPP. You cannot deduct employer PRPP contributions on your income tax and benefit return.

Employer contributions

An employer can make voluntary contributions to your PRPP. Contributions are not included in your income and are not deductible on your income tax and benefit return. Only your contributions to your PRPP are deductible on line 20800. Employer contributions that were made to your plan for the calendar year must be reported on line 20810.

Contributions made with tax-exempt income

For the purposes of contributing to a PRPP, the Income Tax Act allows tax-exempt income earned by an Indian (as defined by the Indian Act), to be included in the calculation of their RRSP deduction limit for the year. Though their PRPP contributions made against tax-exempt income are not tax-deductible in their income tax and benefit return, they can be used as a repayment under the HBP or the LLP. For more information, refer to Lines 7 and 8 – Contributions designated as a repayment under the HBP and the LLP. Fill out and include with your income tax and benefit return a Form RC383, Tax-Exempt Earned Income and Contributions for a Pooled Registered Pension Plan.

PRPP transfers

Where it is permissible, you can ask your PRPP administrator to directly transfer funds from one registered plan to another on a tax-deferred basis. Since you are not receiving an amount from the PRPP, you will not have to include the amount of the transfer as income on your income tax and benefit return.

Transfers to a PRPP

You can directly transfer amounts to your PRPP from another PRPP that you hold. You can also directly transfer amounts to your PRPP from your RPP, RRSP, RRIF, SPP, or DPSP under which you are the annuitant or member.

You can also directly transfer funds to your PRPP account from the same plans mentioned above belonging to your spouse or common-law partner when you are entitled to those amounts because of a breakdown of the marriage or common‑law partnership or death.

Transfers from a PRPP

You can directly transfer amounts from your PRPP funds to another PRPP that you hold. You can also directly transfer amounts from your PRPP to your RPP, SPP, RRSP, or RRIF.

The same transfers can be made for your spouse or common-law partner if they are entitled to the amount because of a breakdown of the marriage or common-law partnership or upon your death.

A deceased member's PRPP proceeds can be rolled over to an RDSP of an eligible individual.

Amounts can also be directly transferred to a licensed annuity provider to acquire a qualifying annuity. However, if PRPP amounts are transferred to purchase a qualifying annuity, and there is an amount paid out of the annuity in the year, the amount paid out is to be included in the income tax and benefit return of the annuitant for the year of transfer.

PRPP payments

Payments from a PRPP are considered to be pension income and are eligible for pension income splitting and the pension income amount if one of the following conditions applies:

• you are aged 65 years or older
• you are the spouse or common-law partner of a deceased PRPP member

If you receive payments from a PRPP, it is taxable on your income tax and benefit return in the year you receive them. Since benefits such as old age security or guaranteed income supplements are calculated on the income you report on your income tax and benefit return each year, your benefits may be reduced accordingly.

PRPP withdrawals

While the Income Tax Act places no restrictions on withdrawing funds from your PRPP account at any time, it does place limits on the credits available to you depending on your age when you receive payments. For example, if you receive payments from your PRPP before you are 65 years of age, you will not be eligible for pension income splitting or the pension income amount.

The Pooled Registered Pension Plans Act also limits the distributions (withdrawals) that you can make to ensure that your PRPP funds are available for your retirement. Similar to other RPPs, the funds in your PRPP are generally "locked-in" and cannot be withdrawn before you retire from employment.

You cannot for example, withdraw amounts from your PRPP to participate in the HBP or LLP. For more information, refer to PRPP life events or visit the Office of the Superintendent of Financial Institutions Canada for information about pension unlocking.

PRPP life events

Although the legislation indicates that the funds within a PRPP are to be used for retirement purposes, the Income Tax Act does provide for certain situations where the funds are distributed prior to retirement age, and to someone other than the PRPP member.

Death of a PRPP member

When the member of a PRPP dies, where there is no successor member, the CRA considers that all property held in the PRPP is deemed to have been distributed immediately before the date of death. The fair market value (FMV) of the assets held in the PRPP account less amounts distributed to qualifying survivors is included on the deceased member's final income tax and benefit return.

A beneficiary will not have to pay tax on any amount paid out of the deceased member’s PRPP account if it can reasonably be regarded as having been included in the deceased member’s income.

For complete detailed information on the death of a PRPP member, refer to Information Sheet RC4178, Death of a RRIF Annuitant, PRPP Member, or ALDA Annuitant.

Breakdown of marriage or common‑law partnership

A former or current spouse or common‑law partner of a PRPP member who is entitled to the funds from the member’s PRPP account as a result of a breakdown of the marriage or common-law partnership, may directly transfer the lump-sum amount to either:

• another registered plan, such as another PRPP, RRSP, SPP, RRIF, or RPP of the individual
• purchase a qualifying annuity

Chapter 9 – Advanced life deferred annuity (ALDA) transfers

For 2020 and later taxation years, you can transfer certain amounts from an RRSP, a RRIF, a PRPP, a money purchase RPP, or a DPSP to purchase an ALDA, using Form T2157, Direct Transfer from a Registered Plan to Purchase an ALDA. An ALDA is a life annuity where the annuity payments must be started before the end of the year in which you turn 85 years of age. An ALDA is payable for as long as you live, or if it is a joint-lives annuity, for as long as you or your spouse or common-law partner lives.

Tax on ALDA cumulative excess amounts

If you make a transfer to purchase an ALDA, either of the following purchases may result in an ALDA cumulative excess amount which is subject to tax:

• a purchase that results in an excess ALDA transfer (refer to Chart A of the T1-OVP-ALDA return for the calculation of any excess ALDA transfers (i.e. amounts in excess of the 25% limit))
• a purchase that causes you to exceed the ALDA dollar limit (the lifetime maximum for all of your ALDA purchases). For 2024, the ALDA dollar limit is $170,000.

ALDA cumulative excess amounts are subject to a tax of 1% per month for every month they are left in the ALDA at the end of the month.

If your ALDA purchases are subject to tax, you have to complete and file a T1-OVP-ALDA return on or before the filing due date of your income tax and benefit return.

Penalty – If you owe tax in a year and do not file your T1-OVP-ALDA return on or before the filing due date of your income tax and benefit return, the CRA will charge you a late-filing penalty. The penalty is 5% of your balance owing, plus 1% of your balance owing for each month that your T1-OVP-ALDA return is late, to a maximum of 12 months. Your late-filing penalty may be higher if the CRA charged you a late-filing penalty on your T1-OVP-ALDA return for any of the three previous years.

Attach your payment to your completed T1-OVP-ALDA return and submit it to:

Canada Revenue Agency
Sudbury Tax Centre
Pension Workflow Team
Post Office Box 20000, Station A
Sudbury ON P3A 5C1

If you do not pay your tax by the deadline, you may also have to pay interest that accumulated on any unpaid amount.

Interest – If you have a balance owing in a year, the CRA charges compound daily interest starting on the 91st day of the following year on any unpaid amounts owing for that year. This includes any balance owing if we reassess your T1-OVP-ALDA return. In addition, the CRA will charge you interest on the penalties indicated in the previous section, starting on that 91st day.

Waiver or cancellation of tax

If you determined that you must pay a tax on your ALDA cumulative excess amount, you may ask in writing that the CRA waives or cancels the tax if both of the following conditions are met:

• your cumulative excess amount on which the tax is based arose due to a reasonable error; and
• you are taking, or have taken, reasonable steps to eliminate the cumulative excess amount

To consider your request, the CRA will need you to send a letter that explains:

• why you made the cumulative excess amount and why this is a reasonable error
• what steps you are taking, or have taken, to eliminate the cumulative excess amount

Send your letters and supporting documents (such as copies of your ALDA account statements that identify the date you withdrew your cumulative excess amount as well as any other correspondence that shows that your cumulative excess amount arose due to a reasonable error) to:

Canada Revenue Agency
Sudbury Tax Centre
Pension Workflow Team
Post Office Box 20000, Station A
Sudbury ON P3A 5C1

For more information on cancellation or waiver of late-filing penalties and interest, refer to Information Circular IC07-1R1, Taxpayer Relief Provisions.

Death of an ALDA annuitant

For complete detailed information on the death of an ALDA annuitant, refer to Information Sheet RC4178, Death of a RRIF Annuitant, a PRPP Member, or ALDA Annuitant.

Chapter 10 – First home savings account (FHSA) transfers

For 2023 and later taxation years, you can transfer property from your RRSP to your FHSA. For more information, go to First Home Savings Account (FHSA).

Transfer from an RRSP to an FHSA

To complete a direct transfer from your RRSPs to your FHSAs, fill out Form RC720, Transfer from your RRSP to your FHSA and give it to your financial institution.

If you make a direct transfer from your RRSPs to your FHSAs, the transfer will reduce your unused FHSA participation room.

The transfer of property from your RRSPs to your FHSAs will not restore your unused RRSP deduction room.

If you have RRSP excess contributions at the time of the transfer from your RRSPs, the transfer of property to your FHSAs will not reduce or eliminate your excess RRSP contributions.

Transfer from an FHSA to an RRSP or RRIF

You will be allowed to transfer property from your FHSAs to your RRSPs or RRIFs without any immediate tax consequences, as long as it is a direct transfer and you do not have an excess FHSA amount.

You can only directly transfer property from your FHSAs to your RRSPs or RRIFs under which you are the annuitant of the plan or fund.

If you do not do a direct transfer, the amount you withdraw from your FHSAs would be a taxable withdrawal and would be treated as a new RRSP contribution. That new contribution would reduce your unused RRSP deduction room and could result in RRSP excess contributions in certain cases.

To complete a direct transfer from your FHSAs to your RRSPs or RRIFs, fill out Form RC721, Transfer from your FHSA to your FHSA, RRSP or RRIF and give it to your financial institution.

Tax deduction on transfer from an RRSP to an FHSA

Contributions that you make to your FHSAs are generally deductible on your income tax and benefit return for the year of the contribution or a future year, similar to RRSP contributions. However. it is important to note that transfers from your RRSPs to your FHSAs are not deductible.

Digital services

Digital services for individuals

The CRA's digital services are fast, easy, and secure!

My Account

My Account lets you view and manage your personal income tax and benefit information online.

Use My Account throughout the year to:

• view your benefit and credit information and apply for certain benefits
• view your notice of assessment or reassessment
• view uncashed cheques and request a replacement payment
• change your address, phone numbers, direct deposit information, marital status and information about children in your care
• manage notification preferences and receive email notifications when important changes are made to your account
• check your tax-free savings account (TFSA) contribution room, your registered retirement savings plan (RRSP) deduction limit and your first home savings account (FHSA) participation room
• track the progress of certain files and enquiries you have submitted to the CRA
• make a payment online to the CRA with the My Payment service, create a pre-authorized debit (PAD) agreement or create a QR code to pay in person at Canada Post for a fee (for more information on how to make a payment, go to Payments to the CRA)
• view and print your proof of income statement
• manage authorized representatives and authorization requests
• submit documents to the CRA
• submit an audit enquiry
• manage Multi-factor authentication settings

To sign in to or register for the CRA's digital services, go to:

• My Account for individuals, if you are an individual
• Represent a Client, if you are an authorized representative

Receive your CRA mail online

Set your correspondence preference to “Electronic mail” to receive email notifications when CRA mail, like your notice of assessment, is available in your account.

For more information, go to Email notifications from the CRA – Individuals.

Electronic payments

Make your payment using:

• your Canadian bank or credit union's online banking or telephone service
• the CRA's My Payment service at Pay now with my Payment with your activated debit card from a participating Canadian bank or credit union with one of the following logos: Visa® Debit or Debit MasterCard® (does not include credit cards)
• pre-authorized debit (PAD) at My Account for Individuals which lets you:
  • set up payments to the CRA from a Canadian chequing account on pre‑set dates starting in five or more business days
  • pay an amount due, repay overpaid amounts, or make instalment payments
  • view your account history and modify, cancel or skip a payment (for more information on PAD, go to Pay by scheduled pre-authorized debit (PAD) through CRA online services)
• the “Proceed to pay” button in the “Accounts and payments” box of the “Overview” panel in My Account, or in the “Account balance and statement of account” or “Instalments” boxes of the “Accounts and Payments” panel in My Account
• your credit card, Interac e-transfer or PayPal through one of the third-party service providers for a fee

For more information, go to Payments to the CRA.

Related forms and publications

Guides

• RC4092 – Registered Education Savings Plans (RESPs)
• RC4112 – Lifelong Learning Plan (LLP)
• RC4137 – Pension Adjustment Reversal Guide
• RC4460 – Registered Disability Savings Plan
• T4084 – Pension Adjustment Guide
• T4104 – Past Service Pension Adjustment Guide

Information sheets

• RC4177– Death of an RRSP Annuitant
• RC4178 – Death of a RRIF Annuitant, PRPP Member, or ALDA Annuitant

Forms

• NRTA1 – Authorization for Non-Resident Tax Exemption
• RC96 – Lifelong Learning Plan (LLP) Request to Withdraw Funds from an RRSP
• RC249 – Post-Death Decline in the Value of a RRIF, an Unmatured RRSP and Post-Death Increase or Decline in the Value of a PRPP
• RC267 – Employee Contributions to a United States Retirement Plan – for Temporary Assignments
• RC268 – Employee Contributions to a United States Retirement Plan – for Cross-Border Commuters
• RC269 – Employee Contributions to a Foreign Pension Plan or Social Security Arrangement – for Non-United States Plans or Arrangements
• RC298 – Advantage Tax Return for RRSP, TFSA, FHSA or RDSP issuers, RESP promoters or RRIF carriers
• RC339 – Individual Return for Certain Taxes for RRSPs, RRIFs, RESPs or RDSPs
• RC2503 – Request for Waiver or Cancellation of Part X.1 Tax - RRSP, PRPP and SPP Excess Contribution Tax
• RC4625 – Rollover to a Registered Disability Savings Plan (RDSP) Under Paragraph 60(m)
• RC720 – Transfer from your RRSP to your FHSA
• RC721 – Transfer from your FHSA to your FHSA, RRSP or RRIF
• RC722 – Transfer from an FHSA to an FHSA, RRSP or RRIF After the Death of the Holder
• RC723 – Transfer from an FHSA to another FHSA, RRSP or RRIF on Breakdown of Marriage or Common-law Partnership
• T1-OVP – 2024 Individual Tax Return for RRSP, PRPP and SPP Excess Contributions
• T1-OVP-ALDA – 2024 Individual Tax Return for Excess Transfers to Purchase an ALDA
• T1-OVP-S – 2024 Simplified Individual Tax Return for RRSP, PRPP and SPP Excess Contributions
• T3 – Statement of Trust Income Allocation and Designations
• T4 – Statement of Remuneration Paid
• T4A – Statement of Pension, Retirement, Annuity, and Other Income
• T4RIF – Statement of Income from a Registered Retirement Income Fund
• T4RSP – Statement of RRSP Income
• T10 – Pension Adjustment Reversal (PAR) or Pension Adjustment Correction (PAC)
• T746 – Calculating Your Deduction for Refund of Unused RRSP, PRPP, and SPP Contributions
• T1004 – Applying for the Certification of a Provisional PSPA
• T1006 – Designating an RRSP, a PRPP or an SPP Withdrawal as a Qualifying Withdrawal
• T1007 – Connected Person Information Return
• T1036 – Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP
• T1043 – Deduction for Excess Registered Pension Plan Transfers You Withdrew from an RRSP, PRPP, SPP or RRIF
• T1090 – Joint Designation on the Death of a RRIF Annuitant, PRPP Member, or ALDA Annuitant
• T1171 – Tax Withholding Waiver on Accumulated Income Payments from RESPs
• T1172 – Additional Tax on Accumulated Income Payments from RESPs
• T215 – Past Service Pension Adjustment (PSPA) Exempt from Certification or Permitted Corrective Contribution (PCC)
• T2019 – Death of an RRSP Annuitant – Refund of Premiums
• T2030 – Direct Transfer Under Subparagraph 60(l)(v)
• T2033 – Direct Transfer under Subsection 146.3(14.1), 147.5(21) or 146(21), or Paragraph 146(16)(a) or 146.3(2)(e)
• T2078 – Election Under Subsection 147(10.1) for a Single Payment Received from a Deferred Profit-Sharing Plan
• T2151 – Direct Transfer of a Single Amount Under Subsection 147(19) or Section 147.3
• T2157 – Direct Transfer from a Registered Plan to Purchase an ALDA
• T2205 – Amounts from a Spousal or Common-law Partner RRSP, RRIF or SPP to Include in Income
• T2220 – Transfer from an RRSP, RRIF, PRPP, or SPP to Another RRSP, RRIF, PRPP or SPP on Breakdown of Marriage or Common-law Partnership
• T3012A – Tax Deduction Waiver on the Refund of your Unused RRSP, PRPP, or SPP Contributions from your RRSP, PRPP or SPP

Interpretation bulletins and income tax folios

• IT-167 ARCHIVED – Registered Pension Funds or Plans – Employee's Contributions
• IT-307 ARCHIVED – Spousal or Common-Law Partner Registered Retirement Savings Plan
• IT-528 ARCHIVED – Transfers of Funds Between Registered Plans
• S1-F5-C1 – Related Persons and Dealing at Arm's Length
• S2-F1-C2 – Retiring Allowances
• S3-F10-C1 – Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
• S3-F10-C2 – Prohibited Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
• S3-F10-C3 Advantages – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
• S5-F1-C1 – Determining an Individual's Residence Status

Information circulars

• IC00-1R6 – Voluntary Disclosure Program
• IC07-1R1 – Taxpayer Relief Provisions
• IC13-1R1 – Pooled Registered Pension Plans (PRPP)
• IC72-22R9 – Registered Retirement Savings Plans
• IC77-1R5 – Deferred Profit-Sharing Plans
• IC78-18R6 – Registered Retirement Income Funds
• IC93-3R2 – Registered Education Savings Plan

For more information

If you need help

If you need more information after reading this guide, go to Taxes or call 1-800-959-8281.

Direct deposit

Direct deposit is a fast, convenient, and secure way to receive your CRA payments directly in your account at a financial institution in Canada. For more information and ways to enrol, go to Direct deposit - Canada Revenue Agency or contact your financial institution.

Forms and publications

The CRA encourages you to file your return electronically. If you need a paper version of the CRA’s forms and publications, go to Forms and publications or call 1-800-959-8281.

Electronic mailing lists

The CRA can send you an email when new information on a subject of interest to you is available on the website. To subscribe to the electronic mailing lists, go to Canada Revenue Agency electronic mailing lists.

Tax Information Phone Service (TIPS)

For tax information by telephone, use the CRA's automated service, TIPS, by calling 1-800-267-6999.

Teletypewriter (TTY) and Video Relay Service (Canada VRS) users

If you use a TTY for a hearing or speech impairment, call 1-800-665-0354.

If you use the Canada VRS application, call 1-800-561-6393.

If you use another operator-assisted relay service, call the CRA's regular telephone numbers instead of the TTY or Canada VRS numbers.

Formal disputes (objections and appeals)

You have the right to file a formal dispute if you disagree with an assessment, determination, or decision.

For more information, go to File an objection.

CRA service feedback program

Service complaints

You can expect to be treated fairly under clear and established rules, and get a high level of service each time you deal with the CRA. For more information about the Taxpayer Bill of Rights, go to Taxpayer Bill of Rights.

You may provide compliments or suggestions, and if you are not satisfied with the service you received:

1. Try to resolve the matter with the employee you have been dealing with or call the telephone number provided in the correspondence you received from the CRA. If you do not have contact information for the CRA, go to Contact the Canada Revenue Agency.
2. If you have not been able to resolve your service-related issue, you can ask to discuss the matter with the employee’s supervisor
3. If the problem is still not resolved, you can file a service-related complaint by filling out Form RC193, Service Feedback. For more information and to learn how to file a complaint, go to Send feedback about CRA service.

If you are not satisfied with how the CRA has handled your service-related complaint, you can submit a complaint to the Office of the Taxpayers’ Ombudsperson.

Reprisal complaints

If you have received a response regarding a previously submitted service complaint or a formal review of a CRA decision and feel you were not treated impartially by a CRA employee, you can submit a reprisal complaint by filling out Form RC459, Reprisal Complaint.

For more information, go to Reprisal Complaints.

Due dates

When a due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on or before the next business day.

For more information, go to Due dates and payment dates.

Cancel or waive penalties and interest

The Canada Revenue Agency (CRA) administers legislation, commonly called the taxpayer relief provisions, that gives the CRA discretion to cancel or waive penalties and interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control.

The CRA's discretion to grant relief is limited to any period that ended within 10 calendar years before the year in which a relief request is made.

For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2024 must relate to a penalty for a tax year or fiscal period ending in 2014 or later.

For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2024 must relate to interest that accrued in 2014 or later.

Taxpayer relief requests can be made online using the CRA's My Account, My Business Account (MyBA) or Represent a Client digital services:

• My Account: After signing in, select “Accounts and payments,” then “Request relief of penalties and interest.”
• MyBA or Represent a Client: After signing in, on the overview page, select the appropriate program from the left menu and then select the account. Finally, select “Request relief of penalties and interest” from the right menu.

You can also fill out Form RC4288, Request for Taxpayer Relief - Cancel or Waive Penalties and Interest, and send it in one of the following ways:

• online using My Account: select “Submit documents” from the left menu; then select "Submit documents" again at the bottom of the next page; and then follow the instructions
• online using MyBA or Represent a Client: for a new case select “Submit documents” from the left menu; then select "No case or reference number?"; and finally, select "Request taxpayer relief - cancel or waive penalties and interest (Form RC4288)"
• by mail to the designated office, as shown on the last page of the form, based on your place of residence

For information on the “Submit documents online” service, go to Submit documents online.

For more details on the required supporting documents, relief from penalties and interest and other related forms and publications, go to Cancel or waive penalties and interest at the CRA.