Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Whether retiring allowance can be transferred to spousal RRSP.
Position TAKEN:
No.
Reasons FOR POSITION TAKEN:
Because Act does not permit it.
CANADIAN PAYROLL ASSOCIATION
NATIONAL CONFERENCE
Terminations Forum
Question 17
Can you transfer an employee's retiring allowance to a spousal registered retirement savings plan (RRSP)?
Answer 17
There is no provision in the Income Tax Act for the transfer of a retiring allowance to a spousal RRSP.
Paragraph 60(j.1) of the Act provides for a deduction with respect to an amount of a retiring allowance brought into the recipient's income and transferred to the recipient's RRSP. In most cases the recipient will be the employee, although if the retiring allowance is received by an estate after the death of a retired employee, subsection 104(28) of the Act deems the amount to be received by the beneficiary. In these circumstances, the beneficiary may transfer the amount eligible under paragraph 60(j.1) of the Act to the beneficiary's RRSP and take a deduction. (See paragraphs 9 and 12 of IT-337R2 - "Retiring Allowances".)
Prepared by: P. Spice
May 5, 1994