Property from an unmatured RRSP
Property from an unmatured RRSP is a payment from an RRSP that has not started to pay retirement income to an annuitant. This payment can be transferred directly to your RPP, your RRSP, a RRIF, a PRPP or an SPP.
If you receive any of the types of payments listed above (for example, in cash or by cheque), you have to include them in your income for the year you receive them and you cannot transfer them on a tax-deferred basis. If you want to transfer these amounts tax-free to another registered plan or fund, make sure you inform the payer to transfer them directly.
Amounts cannot be transferred to an RRSP if you were over 71 years old at the end of the tax year.
Sometimes, the fair market value (FMV) of the property of an unmatured RRSP 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 is less than the FMV of the RRSP at the time of the annuitant's death, a deduction may be claimed on the final Income Tax and Benefit Return of the annuitant. For more information, see Death of an RRSP annuitant or a PRPP Member.
Filling out your Income Tax and Benefit Return
If you transferred the amount directly, do not claim a deduction and do not report the income on your Income Tax and Benefit Return. You and the RRSP issuer should fill out Form T2033, Direct Transfer under Subsection 146.3(14.1), 147.5(21) or 146(21), or Paragraph 146(16)(a) or 146.3(2)(e). However, if you received the payment in cash or by cheque, you cannot defer the tax. Report the amount on line 12900 of your return in the year the payment is received.
Payments that you received from an unmatured RRSP that you were entitled to under a court order or written agreement relating to a division of property between you and your current or former spouse or common-law partner in settlement of rights arising from the breakdown of your relationship, may be transferred directly to another RRSP if you were 71 or younger at the end of the year or to a RRIF if you were older than 71 years of age. However, at the time of the transfer, you and your spouse or common-law partner had to be living separate and apart because of a breakdown in your relationship. Do not claim a deduction for the amount directly transferred and do not report the income on your Income Tax and Benefit Return. You and the RRSP issuer should fill out Form T2220, Transfer from an RRSP, RRIF, PRPP or SPP to Another RRSP, RRIF, PRPP or SPP on Breakdown of Marriage or Common-law Partnership for this type of transfer. A T4RSP slip will be issued to you with an entry in box 35.
Any amounts withdrawn after the transfer date are taxable to you.
You do not have to use the forms we have indicated. The institution that transfers your payment may use other documentation to record the transfer. The institution has to provide you with confirmation of the details of the transfer.
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