25 September 1996 External T.I. 9627485 - SPOUSAL RRSP REPORTING REQUIREMENTS

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Is the RRSP issuer or carrier required to maintain a spousal designation of an RRSP following the death of the contributing spouse?

Position:

NO

Reasons:

Administrative position

									5-962748
XXXXXXXXXX							Franklyn S. Gillman

Attention: XXXXXXXXXX

September 25, 1996

Dear Sirs:

Re: Spousal Registered Retirement Savings Plan following the contributor's death

This is in reply to your letter dated August 6, 1996 wherein you questioned the necessity of designating a registered retirement savings plan ("RRSP") as a spousal plan following the death of the contributor spouse.

According to the Income Tax Act a spousal plan in relation to a taxpayer is defined at subsection 146(1) as:

"(a)a RRSP;

(i) to which the taxpayer has, at a time when the taxpayer's spouse was the annuitant under the plan, paid a premium; or

(ii) that has received a payment out of or a transfer from a RRSP or a registered retirement income fund ("RRIF") that was a spousal plan in relation to the taxpayer, or

(b) a RRIF that has received a payment out of or a transfer from a spousal plan in relation to the taxpayer."

Once an RRSP or RRIF meets the definition of a spousal plan, it does not lose this status.

Revenue Canada has recently completed a review of the requirements to maintain a spousal designation of RRSPs in situations where the contributing spouse has died. In such instances, the RRSP issuer or carrier is able to delete the spousal information from their files. With respect to a marriage breakdown, the Department still requires the designation of a spousal plan.

We trust this information will assist you. Should you have any questions concerning the guides and information slips relating to registered retirement plans and funds, please contact the T1 Supplementary Guides Division, Client Assistance Directorate of this Department, Ottawa, Ontario K1A 0L8. Questions concerning technical interpretations of the Income Tax Act may be directed to us.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch