| 19(1) | File No. 5-8437 |
| D.S. Delorey | |
| (613) 957-3495 |
September 8, 1989
This is in reply to your letter of July 27, 1989 concerning the withdrawal of funds from a registered retirement savings plan (RRSP).
24(1)
Subsection 146(8.3) applies where funds are withdrawn in a particular taxation year from an RRSP and a deduction is made under subsection 146(5.1) for premiums paid to the RRSP in that taxation year or in one of the two immediately preceding taxation years. With respect to Plan 2, the premiums paid by the husband are deductible by him under subsection 146(5), not subsection 146(5.1). Thus, subsection 146(8.3) would not apply to attribute to 24(1) any portion of the 24(1) withdrawn by the husband in 1989 from Plan 2.
Had the husband instead withdrawn the 24(1) from Plan 1, the full 24(1) would have been taxable in 24(1) hands since she paid premiums to Plan 1 in 1987 and 1988 exceeding that amount, which premiums were deductible by her under subsection 146(5.1).
We trust the above comments will be of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate