How to issue T4RSP slips
We explain below how to issue slips in various situations.
Situation 1: The spouse or common-law partner is designated as the sole beneficiary of the RRSP, and the following conditions apply:
- you are making a direct transfer of the entire refund of premiums under paragraph 60(l) to the spouse or common-law partner's RRSP or RRIF, or to an issuer to buy an eligible annuity for the spouse or common-law partner
- all the RRSP property is distributed before the end of the exempt period
In this case, issue a T4RSP slip in the name of the spouse or common-law partner for the year you complete the transfer. Enter the amount of the payout as a refund of premiums in box 18. This amount can include income earned in the RRSP after the date of death to the date of the transfer, since the amount is paid before the end of the exempt period. Do not issue any slip in the name of the deceased.
Note
In Quebec, a beneficiary designation of RRSP proceeds in the RRSP contract or will is not valid except in limited circumstances. We will accept the short form reporting method described above in Situation 1 where all of the RRSP proceeds are payable to the spouse or common-law partner under the terms of the will and the other conditions are met.
However, if Situation 1 does not apply, report the fair market value (FMV) of the RRSP at the time of death in box 34 of a T4RSP slip issued in the name of the deceased annuitant for the year of death. Circumstances will sometimes arise where that FMV will be greater than the totals of all the payments made from the RRSP after the annuitant's death. If this occurs you have to fill out Form RC249, Post-Death Decline in the Value of a RRIF, an Unmatured RRSP and Post-Death Increase or Decline in the Value of a PRPP.
You fill out Form RC249 for the year in which you make the final payment from the RRSP, and you must complete it no later than the last day of February following the calendar year in which you make that final payment. You must send one copy of the completed form to the deceased annuitant's legal representative and one copy to your tax centre.
For more information on post-death decline in the value of an unmatured RRSP, see Information Sheet RC4177, Death of an RRSP Annuitant.
Situation 2: The spouse or common-law partner is designated as the sole beneficiary of the RRSP, but the conditions stated in situation 1 do not apply.
For the fair market value (FMV) at date of death, in all cases, report the fair market value (FMV) in box 34 of a T4RSP slip issued in the name of the deceased annuitant for the year of death. This is income that can be considered as a refund of premiums. After completing a T4RSP slip, you may find that part or all of an amount reported in box 34 may be a refund of premiums to a surviving spouse, common-law partner, or financially dependent child or grandchild. If this happens, do not issue an amended T4RSP slip. We routinely assess or reassess returns based on a completed Form T2019, Death of an RRSP Annuitant – Refund of Premiums.
For income earned from the date of death to the end of the exempt period, in all cases, report income in box 18 of a T4RSP slip issued in the name of the spouse or common-law partner for the year in which the benefit is paid. This is income that can be considered as a refund of premiums.
For income earned after the end of the exempt period, the following applies:
If the income is from a depositary RRSP, report income on a T5 slip issued in the name of the spouse or common-law partner for the year in which the income is credited or added to the deposit. For information on how and when to issue T5 slips, see T4015, T5 Guide – Return of Investment Income.
If the income is from a trusteed RRSP report as follows:
- Report the RRSP benefit in boxes 28 and 40 (since it is a tax-paid amount) of a T4RSP slip issued in the name of the beneficiary. This is the income earned or realized by the trust in a year that is paid to the beneficiary in that year.
- If the income is not an RRSP benefit, see Tax-paid amount and after-tax amount from an unmatured RRSP. This is the income earned or realized by the trust in a year that is not paid to the spouse or common-law partner in that year. The trust is liable for the tax on this income.
If the income is from an insured RRSP, report income in box 18 of a T4RSP slip issued in the name of the spouse or common-law partner for the year in which the benefit is paid. This is income that can be considered as a refund of premiums.
For more information on the tax-paid amount, see Tax-paid amount and after-tax amount from an unmatured RRSP.
Situation 3: All other situations
In all other situations, the treatment is similar. If there is a designated beneficiary, make the payout to the designated beneficiary. If not, make the payout to the estate.
For the fair market value (FMV) at date of death, in all cases, report the fair market value (FMV) in box 34 of a T4RSP slip issued in the name of the deceased annuitant for the year of death. This is income that can be considered as a refund of premiums if paid to a qualifying survivor.
For income earned from the date of death to the end of the exempt period, in all cases, report income in box 28 of a T4RSP slip issued in the name of the beneficiary for the year in which the benefit is paid. This is income that can be considered as a refund of premiums if paid to a qualifying survivor.
When amounts from a deceased annuitant's RRSP are paid to the annuitant's estate and a qualifying survivor is a beneficiary of the estate, the deceased annuitant's legal representative and the qualifying survivor can jointly file Form T2019, Death of an RRSP Annuitant – Refund of Premiums or Joint Designation on the Death of a PRPP Member, to designate all or part of the amounts the annuitant's estate received from the RRSP as having been received by the qualifying survivor as a refund of premiums.
For income earned after the end of the exempt period, the following applies:
If the income is from a depositary RRSP, report income on a T5 slip issued in the name of the beneficiary for the year in which the income is credited or added to the deposit. For information on how and when to issue T5 slips, see T4015, T5 Guide - Return of Investment Income.
If the income is from a trusteed RRSP, report as follows:
- Report the RRSP benefit in boxes 28 and 40 (since it is a tax-paid amount) of a T4RSP slip issued in the name of the beneficiary. This is the income earned or realized by the trust in a year that is paid to the beneficiary in the year.
- If the income is not an RRSP benefit, see Tax-paid amount and after-tax amount from an unmatured RRSP. This is the income earned or realized by the trust in a year that is not paid to the beneficiary in that year. The trust is liable for the tax on this income.
For more information on the tax-paid amount, see Tax-paid amount and after-tax amount from an unmatured RRSP.
If the income is from an insured RRSP, report income in box 28 of a T4RSP slip issued in the name of the beneficiary for the year in which the benefit is paid. This is income that can be considered as a refund of premiums if paid to a qualifying survivor.
When amounts from a deceased annuitant's RRSP are paid to the annuitant's estate and a qualifying survivor is a beneficiary of the estate, the deceased annuitant's legal representative and the qualifying survivor can jointly file Form T2019, Death of an RRSP Annuitant – Refund of Premiums, to designate all or part of the amounts the annuitant's estate received from the RRSP as having been received by the qualifying survivor as a refund of premiums.
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