An individual, who made an excess contribution in 2015, dies in 2016. Will the excess contribution be added to the deceased’s income under ss. 146(8) and (8.8)? CRA responded:
Under subsection 146(8.8), where the annuitant of an RRSP dies before its maturity, the annuitant is deemed to have received, immediately before the annuitant’s death, as a benefit out of or under the RRSP, an amount equal to the fair market value ("FMV") of all the property of the RRSP at the time of death. … The fact that premiums paid to the RRSP prior to the time of death could not be deducted has no impact on the amount to be included.