RRSP, RRIF and RPP Rollover announcements from the Budget 2010
Disclaimer: RDSP issuers
The information contained on this page is technical in nature and is intended for Registered Disability Savings Plan (RDSP), Canada Disability Savings Grant (grant) and Canada Disability Savings Bond (bond) issuers. For general information, visit the RDSP section.
Consult this page frequently for newer versions. The following laws and regulations take precedence over information contained in InfoCapsules in the event of discrepancies:
- Income Tax Act
- Canada Disability Savings Act
- Canada Disability Savings Regulations
Official Title: RRSP, RRIF and RPP Rollover announcements from the Budget 2010
Information Bulletin
- Number:
- CDSP/ PCEI -2011/12-004A-066
- Date:
- July 28th, 2011
- Subjet:
- Notice #066 - RRSP, RRIF and RPP Rollover as a result of the Budget 2010 announcements relating to the Canada Disability Savings Program
Purpose
The purpose of this Information Bulletin is to provide Registered Disability Savings Plan (RDSP) Issuers and Authorized Agents a training manual to assist them with training.
Objective of the Rollover of RRSP/RRIF Proceeds to an RDSP
The objective of these changes is to give parents and grandparents more flexibility in providing for a disabled child's long-term financial security. Legislation now allows a deceased individual's Registered Retirement Savings Plan (RRSP) or Registered Retirement Investment Fund (RRIF) or the proceeds of a member of a Registered Pension Plan to be transferred to the RDSP of a financially dependent infirm child or grandchild.
The amount transferred (rolled over) will not attract incentives and, like a regular contribution, will decrease the beneficiary's lifetime contribution room, currently set at $200,000. The amount rolled over, when added to contributions made in the name of the beneficiary, are not to be permitted to exceed the $200,000 lifetime limit.
Key Dates
This measure is effective on deaths that have occurred on or after March 4, 2010. However, where the death of an RRSP annuitant occurs after 2007 and before 2011, special transitional rules allow a contribution to be made to the RDSP of a financially dependent infirm child or grandchild of the annuitant. For further information, please contact the Canada Revenue Agency.
To allow time for system development, RDSP contributions benefiting from the proposed rollover measure could not be made before July 2011.
Training Manual
Included with this Information Bulletin is a training manual to assist in the identification of the requirements for rolling over various financial proceeds into an RDSP.
Contact Us
Questions on this Information Bulletin should be directed to the Canada Disability Savings Program by e-mail at rdsp-reei@hrsdc-rhdcc.gc.ca or by calling 1-888-276-3632.