Amounts paid from an RRSP or RRIF upon the death of an annuitant

Amounts received as a refund of premiums can be transferred directly or indirectly to your RRSP, or a RRIF, a PRPP, a SPP or to buy yourself an eligible annuity if you were a qualified beneficiary of the deceased annuitant.

Note

To determine if the amounts received qualify as a refund of premiums, see Death of an RRSP annuitant.

If, at the time of the annuitant's death, you are the spouse or common-law partner, or the child or grandchild who is financially dependent on the annuitant because of an impairment in physical or mental functions, you can transfer certain amounts from the annuitant's RRSP or RRIF, on a tax-deferred basis.  

Since July 1, 2011, you can also rollover the proceeds of a deceased annuitant's RRSP or RRIF to the RDSP of a financially dependent infirm child or grandchild. For special transitional rules, see Registered disability savings plan (RDSP).

If you are the child or grandchild of the deceased annuitant, and you are not financially dependent because of an impairment in physical or mental functions, you can only transfer the amounts to a term annuity.

Note

For the purposes of a refund of premiums, the comments above do not apply to a specified pension plan (SPP).

To transfer a refund of premiums to an RRSP, the qualified beneficiary must be 71 years old or younger at the end of the year the transfer is made.  

The transfer or purchase has to be completed in the year the refund of premiums is received or within 60 days after the end of the year.

Sometimes, the fair market value (FMV) of the property of an unmatured RRSP or a RRIF can decrease between the date of death and the date of final distribution to the beneficiary or the estate. If the total of all the amounts paid from an unmatured RRSP or RRIF is less than FMV of the RRSP or RRIF at the time of the annuitant's death, a deduction may be claimed on the final tax return of the annuitant. For more information, see Death of an RRSP annuitant or Death of a RRIF annuitant
or a PRPP Member
.

Filling out your Income Tax and Benefit Return

The issuer who receives the transferred funds will issue a receipt to the qualified beneficiary. The beneficiary can use the receipt to claim a deduction on their tax return for the year the refund of premiums was received.

Funds received from an RRSP:

  • If these funds were transferred to an RRSP, fill out Schedule 7, RRSP and PRPP Unused Contributions, Transfers, and HBP or LLP Activities. Report the amount on line 24640 and submit Schedule 7 with your tax return. Include the income on line 12900 and claim the deduction on line 20800 of your tax return.
  • If these funds were transferred to a RRIF or an annuity, include the income on line 12900 and claim the deduction on line 23200 of your tax return.

If there is a decrease in the FMV of an unmatured RRSP between the date of death and the date of final distribution to the beneficiary or the estate, see Death of an RRSP annuitant.

Funds received from a RRIF:

If these funds were received due to the death of a spouse or common-law partner, or if you were 65 or older on December 31 of the tax year in which you received the funds, report these funds on line 11500 of your tax return.

  • If these funds are transferred to your RRSP, fill out and submit a Schedule 7 and deduct the amount on line 20800 of your tax return
  • If the funds are transferred to a RRIF or to an annuity, deduct the amount on line 23200 of your tax return

If these funds were not received due to the death of a spouse or common-law partner, or if you were not 65 or older on December 31 of the tax year in which you received the funds, report these funds on line 13000 of your tax return.

  • If these funds are transferred to your RRSP, fill out and submit a Schedule 7 and deduct the amount on line 20800 of your tax return
  • If the funds are transferred to a RRIF or to an annuity, deduct the amount on line 23200 of your tax return

If there is a decrease in the FMV of a RRIF between the date of death and the date of final distribution to the beneficiary or the estate, see Death of a RRIF annuitant or a PRPP Member.

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: