25 February 1991 Internal T.I. 903569 F - Determination of "Earned Income" for Purposes of Calculating an RRSP Deduction

By services, 18 January, 2022
Official title
Determination of "Earned Income" for Purposes of Calculating an RRSP Deduction
Language
French
CRA tags
n/a
Document number
Citation name
903569
Severed letter type
Technical Interpretation - Internal
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
630427
Extra import data
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Main text

Dear Sir:

This is in reply to your letter of November 11, 1990 concerning the determination of "earned income" for purposes of calculating a Registered Retirement Savings Plan deduction.

Under the provisions of the Income Tax Act, one of the 1990 limits for contributions to a Registered Retirement Savings Plan is 20% of earned income.  Investment income, such as dividends, interest, is not included in the definition of "earned income".  Beginning with 1990, superannuation, Canada Pension Plan and Old Age Security payments are no longer included in the definition of "earned income" nor are amounts received from a RRIF or an RRSP.

While we appreciate your situation, it should be noted that this Department has the responsibility for administering the law as enacted by Parliament and has no authority to waive any requirements of the Income Tax Act.

While we regret not being able to assist you in this matter, we trust our comments will be of assistance to you.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate.