2024-1007121C6 2024 CALU RT Q8- IPPs & Past Service Contributions

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.

Principal Issues: Whether a transfer of property from a RRIF to an IPP is a qualifying transfer for purposes of subsection 8303(6) of the Regulations?

Position: No.

Reasons: The definition of a qualifying transfer in subsection 8303(6) of the Regulations lists the various acceptable transfers. A transfer from a RRIF is not included and as such is not a qualifying transfer.

Author: Baldwin, Todd
Section: ITR 8303(6)

CALU Roundtable - May 2024

Question 8 - IPPs and Past Service Contributions

Where an Individual Pension Plan (IPP) (endnote 1) is established and a plan member is aged 71 in the effective year of the plan, would the Registered Plan Directorate allow the qualifying transfer which is required as part of a Past Service contribution (typically satisfied by a transfer of the required asset value from a Registered Retirement Savings Plan) to be satisfied by the transfer of the required asset value from a Registered Retirement Income Fund (RRIF)?

CRA Response

No. A transfer of property from a RRIF to a defined benefit provision of a registered pension plan (including an IPP) is not a qualifying transfer for purposes of subsection 8303(6) of the Income Tax Regulations.


Todd Baldwin/Paul K. Taylor, Registered Plans Directorate
2024-100712
May 7, 2024

ENDNOTES

1 Defined in subsection 8300(1) of the Income Tax Regulations.

All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without the prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5.

© His Majesty the King in Right of Canada, 2024

Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistribuer de l'information, sous quelque forme ou par quelque moyen que ce soit, de façon électronique, mécanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.

© Sa Majesté le Roi du Chef du Canada, 2024

Monthly Tax Update

For additional commentary on Technical Interpretations, court cases, government releases, and conference materials in a single practical document specifically geared toward owner-managed businesses, see Video Tax News Monthly Tax Update newsletter.

This effective summary and flagging tool is the most efficient way to ensure that you, your firm, and clients are fully supported and armed for whatever challenges are thrown your way.

Packages start at $470/year.

Learn More

Video Tax News is a proud commercial publisher of Canada Revenue Agency's Technical Interpretations. To support you, our valued clients and your network of entrepreneurial, small businesses, we choose to offer this valuable resource to Canadian tax professionals free of charge.

For additional commentary on Technical Interpretations, court cases, government releases, and conference materials in a single practical document specifically geared toward owner-managed businesses see the Video Tax News Monthly Tax Update newsletter. This effective summary and flagging tool is the most efficient way to ensure that you, your firm, and your clients are fully supported and armed for whatever challenges are thrown your way. Packages start at $400/year.