REVENUE CANADA TAXATION MEMORANDUM
TO Assessing Division FROM Farms, Personal and General Section N.R. Mitchell 957-2139
March 27, 1986
ATTENTION Jack Szeszycki
RE U.S. Social Security Benefits; Paragraph 60(j)
and Subparagraph 6(1)(g)(iii)This is further to your recent discussions with Paul Fuoco of this Division on the question of whether or not U.S. Social Security benefits are amounts described in subparagraph 6(1)(g)(iii) of the Act and are thus eligible for rollover to an R.R.S.P. as provided for in paragraph 60(1) of the Act.
In our view, superannuation or pension benefits under the U.S. Social Security Act are indeed amounts described in subparagraph 6(1)(g)(iii) of the Act. As we see it, the reference in paragraph 60(j) to "subparagraph 6(l)(g)(iii)" obliges one to look only to the terms of that specific subparagraph and not to the balance of paragraph 6(1)(g). In other words, we do not consider it necessary that the "superannuation or pension benefit attributable to services rendered by a person in a period during which he was not resident in Canada" must at the same time be an amount received from an "employee benefit plan" as that term is defined in the Act. We attach for your reference a copy of a legal opinion rendered by General Counsel for the Department of Finance which supports this view. Copies of relevant correspondence are also attached.
Accordingly, it is our position that supperannuation or pension benefits received by a resident of Canada under the U.S. Social Security Act are eligible for rollover to an R.R.S.P. as provided for in paragraph 60(j) of the Act.
for Director Small business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch