RRSPs and Other Registered Plans for Retirement

T4040(E) Rev. 12

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Table of contents

• Is this guide for you?
• What's new?
• Definitions
• Chapter 1 - RPP contributions
  • Current service and past service contributions for 1990 or later years
  • Past service contributions for 1989 or earlier years
  • Interest on past service contributions
  • Excess contributions for current service made from 1976 to 1985
  • Other deductions
  • Calculating your 2012 deduction for your RPP contributions
• Chapter 2 - RRSP contributions
  • How do you claim your RRSP deduction?
  • Age limit for contributing to an RRSP
  • Contributing to your RRSPs
    • How much can you deduct?
    • Calculating your 2012 RRSP deduction limit
    • Contributions you can deduct for 2012
  • Contributing to your spouse's RRSP or common-law partner's RRSP
  • Keeping track of your RRSP contributions - Schedule 7
    • Line 1 - Unused RRSP contributions
    • Lines 2 and 3 - Total RRSP contributions
    • Lines 6 and 7 - Repayments under the HBP and the LLP
    • Line 10 - RRSP contributions you are deducting for 2012
    • Line 11 - Transfers
    • Lines 15 to 18 - 2012 withdrawals under the HBP and the LLP
  • Unused RRSP contributions
    • Withdrawing the unused contributions
    • Tax on RRSP excess contributions
• Chapter 3 - RRIF contributions
  • Property from an RRSP
  • RPP payments
  • DPSP payments
  • Property from another RRIF
  • Specified pension plan (SPP) payments
• Chapter 4 - Anti-avoidance rules for RRSPs and RRIFs
  • Tax payable on non-qualified investments
  • Reporting requirements by the RRSP or RRIF trust
  • Tax payable on prohibited investments
  • Tax payable on an advantage
  • Transitional relief
  • Refund of taxes paid on non-qualified or prohibited investments
  • How to request a waiver or a cancellation of taxes
• Chapter 5 - Payments from an RRSP or a RRIF
  • Transfers to registered disability savings plans
  • Locked‑in RRSP
  • Amounts from an SPP account or amounts from a spousal or common‑law partner RRSP or RRIF
    • Calculating the income you and your spouse or common‑law partner have to report
• Chapter 6 - Transfers to registered plans or funds and annuities
  • Registered education savings plan accumulated income payments
  • Other transfers
  • Direct transfer of an RPP lump-sum payment
    • Excess transfer of an RPP lump-sum payment
• Chapter 7 - PAs, PARs, and PSPAs
  • Pension adjustments (PAs)
    • Does your employer have to report a PA for you?
    • What does your PA affect?
  • Pension adjustment reversals (PARs)
  • Past service pension adjustments (PSPAs)
    • Types of PSPAs
    • Cost of past service benefits
    • What happens if we cannot certify your PSPA?
    • Net PSPA
• Related forms and publications
• For more information
  • What if you need help?
  • Forms and publications
  • My Account
  • Tax Information Phone Service (TIPS)
  • Teletypewriter (TTY) users
  • Our service complaint process
  • Your opinion counts!

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Is this guide for you?

Use this guide if you want information about registered pension plans (RPPs), registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs), registered education savings plan (RESPs), specified pension plans (SPPs) and accumulated income payments (AIP). This guide has information which is not in your income tax package and which you may need to complete your return.

Chapter 1 has information about making contributions to an RPP. Chapter 2 has information about RRSPs, including what your options are if you cannot deduct all the amounts you contribute to an RRSP, and when to complete Form T1-OVP, 2012 Individual Tax Return for RRSP Excess Contributions. Chapter 3 describes the types of amounts you can contribute to a RRIF.  Chapter 4 provides general information on the anti-avoidance rules for non-qualified investments, prohibited investments and advantages, as well as the options for transitional relief and claiming a refund. To determine the amounts you can receive from an RRSP or a RRIF, and to find out how to report those amounts, see Chapter 5. If you want to transfer an amount from one of your plans to another, see Chapter 6 for your options. Chapter 7 provides general information on the pension adjustment (PA), pension adjustment reversal (PAR), and past service pension adjustment (PSPA). We use these three amounts to determine how much you can contribute to an RRSP.

Definitions - We have included definitions of some of the terms used in this guide in the Definitions section. You may want to read this section before you start.

What's new?

Definitions

These definitions give you a general description of the technical terms we use in this guide.

Acronyms - The following is a list of the acronyms we use:

DPSP	-	Deferred Profit-Sharing Plan
HBP	-	Home Buyers' Plan
LLP	-	Lifelong Learning Plan
PA	-	Pension Adjustment
PAR	-	Pension Adjustment Reversal
PSPA	-	Past Service Pension Adjustment
RDSP	-	Registered Disability Savings Plan
RESP	-	Registered Education Savings Plan
RRIF	-	Registered Retirement Income Fund
RRSP	-	Registered Retirement Savings Plan
SPP	-	Specified Pension Plan

Advantage — an advantage in relation to an RRSP or RRIF is any benefit, loan, or debt that depends on the existence of the RRSP or RRIF, other than: distribution, administrative or investment services in connection with the RRSP or RRIF, loans on arm's length terms, and payments or allocations (such as bonus interest) to the RRSP or RRIF by the issuer or carrier.

An advantage also includes any benefit that is an increase in the total fair market value of the property held in connection with the RRSP or RRIF that can reasonably be considered attributable, directly or indirectly, to one of the following:

• a transaction or event (or a series of transactions or events) that would not have occurred in an open market between arm's length parties acting prudently, knowledgeably, and willingly and one of the main purposes of which is to enable the annuitant (or another person or partnership) to benefit from the tax-exempt status of the RRSP or RRIF;
• a payment received in substitution for either;
  • a payment for services provided by the annuitant (or another person not at arm's length with the annuitant); or
  • a payment of a return on investment or proceeds of dispositions for property held outside of the RRSP or RRIF by the annuitant or a person not dealing at arm's length with the annuitant;
• a swap transaction; or
• specified non-qualified investment income that has not been paid from the RRSP or RRIF within 90 days of the annuitant receiving a notice from us requiring them to remove the amount from the RRSP or RRIF.

An advantage also includes an RRSP strip or any benefit that is income (including a capital gain) that is reasonably attributable, directly or indirectly, to one of the following:

• a prohibited investment in respect of the RRSP or RRIF or any other RESP or RRIF of the annuitant;
• an amount received by the annuitant of the RRSP or RRIF (or by a person not dealing at arm's length with the annuitant) if it is reasonable to consider that the amount was paid in relation to, or would not have been paid but for, property held in connection with the RRSP or RRIF, and the amount was paid in substitution for either a payment:
  • for services provided by the annuitant (or another person not at arm's length with the annuitant); or
  • of a return on investment or proceeds of disposition.

Note
If the advantage is extended by the issuer/carrier of an RRSP or RRIF, or by a person with whom the issuer/carrier is not dealing at arm's length, the issuer/carrier, and not the annuitant of the RRSP or RRIF, is liable to pay the tax resulting from the advantage.

Annuitant — generally, an annuitant of an RRSP or RRIF is the person for whom the plan or fund provides a retirement income. In certain circumstances, the surviving spouse or common-law partner may qualify as the annuitant when, because of the death, he or she becomes entitled to receive benefits out of the plan or fund.

Common-law partner — a person who is not your spouse, with whom you are living in a conjugal relationship, and to whom at least one of the following situations applies. He or she:

a)	has been living with you in a conjugal relationship for at least 12 continuous months;
b)	is the parent of your child by birth or adoption; or
c)	has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.

In addition, an individual immediately becomes your common-law partner if you previously lived together in a conjugal relationship for at least 12 continuous months and you have resumed living together in such a relationship. Under proposed changes, this condition will no longer exist. The effect of this proposed change is that a person (other than a person described in b) or c)) will be your common-law partner only after your current relationship with that person has lasted at least 12 continuous months. This proposed change will apply to 2001 and later years.

Reference to "12 continuous months" in this definition includes any period you were separated for less than 90 days because of a breakdown in the relationship.

Commutation payment — a fixed or single lump-sum payment from your RRSP annuity that is equal to the current value of all or part of your future annuity payments from the plan.

DPSP — an employer-sponsored plan we register, in which the employer shares the profits of a business with all the employees or a designated group of employees.

Defined benefit provision — the terms of an RPP that promise a certain level of pension on retirement based on the employee's earnings and years of service.

Earned income — we calculate your earned income by adding your employment earnings, self-employment earnings, and certain other types of income, then subtracting specific employment expenses and business or rental losses. To determine your earned income, see Step 2 of Chart 3.

Financially dependent — if you are a child or grandchild of a deceased annuitant, you are generally considered financially dependent on that annuitant at the time of death if, before that person's death, you ordinarily resided with and depended on the annuitant, and you meet one of the following conditions:

• your net income for the previous year (shown on line 236 of your return) was less than the basic personal amount (line 300 from Schedule 1) for that previous year; or
• you are infirm and your net income for the previous year was equal to or less than the basic personal amount plus the disability amount (line 316 from Schedule 1) for that previous year.

If, before the annuitant's death, you are away from home because you were attending school, we still consider you to have resided with the annuitant.

If your net income was more than the amounts described above, we will not consider you to be financially dependent on the annuitant at the time of death, unless you can establish that you were. To do so, you or the legal representative should submit a request in writing to your tax services office explaining why we should consider you to be financially dependent on the annuitant at the time of death.

Foreign plan — a plan or arrangement maintained primarily to benefit non-residents for services they perform outside Canada.

Matured RRSP — an RRSP that is paying you retirement income.

Money purchase provision — the terms of an RPP under which the amount of your pension depends on how much you and your employer contribute to the RPP for you.

Prohibited investment — this is an investment to which the RRSP or RRIF annuitant is closely connected. It includes:

• a debt of the annuitant;
• a debt or share of, or an interest in, a corporation, trust or partnership in which the annuitant has a significant interest (generally a 10% or greater interest); and
• a debt or share of, or an interest in, a corporation, trust or partnership with which the annuitant, does not deal at arm's length.

A prohibited investment does not include a mortgage loan that is insured by the Canada Mortgage and Housing Corporation or by an approved private insurer. It also does not include certain investment funds.

Qualifying group RRSP contributions — often referred to as "mandatory group RRSP contributions". They are contributions you are required make to a "qualifying arrangement". An arrangement is a qualifying arrangement if:

• it is for two or more individuals;
• the contributions are amounts you are entitled to for services you provided; and
• the contributions are remitted to the RRSP by the person who pays you, or by an agent for that person.

Qualifying group RRSP contributions do not include amounts that you could have prevented from being paid after beginning to participate in the arrangement and within 12 months before the contribution was paid.

Qualifying retirement plan — for purposes of the Canada-U.S. Tax Convention, a United States qualifying retirement plan is a plan that is generally exempt from income tax in the U.S. and is operated primarily to provide pension or retirement benefits. Common qualifying U.S. retirement plans include 401(k) arrangements. For a complete list of qualifying U.S. retirement plans, go to Protocol Amending the Convention Between Canada and the United States of America With Respect to Taxes on Income and on Capital (paragraph 10).

Retiring allowance — also called severance pay, this is an amount you receive on or after retirement from an office or employment in recognition of long service. It can include payment for unused sick leave and amounts you receive for loss of office or employment, whether as a payment of damages or a payment under an order or judgment of a tribunal. For more information, see Retiring allowance in Chart 8.

RESP — a registered contract between an individual (the subscriber) and a person or organization (the promoter). The subscriber generally makes contributions to the RESP, which earns income, paid in the form of educational assistance payments to one or more identified beneficiaries.

RPP — a pension plan that we have registered. Funds are contributed by an employer, or by an employer and employees, to provide a pension to employees when they retire.

RRIF — a fund you establish with a carrier and that we register. You transfer property to the carrier from an RRSP, RPP, SPP, or from another RRIF, and the carrier makes payments to you.

RRSP — a retirement savings plan that you establish, that we register, and to which you or your spouse or common-law partner contribute. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.

RRSP Strip — this is an amount used or obtained by the annuitant of the RRSP or RRIF, or a person who does not deal at arm's length with the annuitant, as part of a transaction or event or a series of transactions or events one of the main purposes of which is to enable the annuitant, or a person who does not deal at arm's length with the annuitant, to use or obtain the benefit of property held in connection with the RRSP or RRIF, but not include an amount that is:

• included in the income of the annuitant or his or her spouse or common-law partner;
• withdrawn under the Home Buyer's Plan or the Lifelong Learning Plan;
• a permitted transfer of funds from one plan to another; or
• the principal amount of a mortgage loan that is insured by the Canada Mortgage and Housing Corporation or by an approved private insurer.

RRSP contribution — the amount you pay, in cash or in kind, at the time you contribute to an RRSP. In kind contributions consist of the fair market value of the property.

RRSP deduction — the amount you indicate on line 208 when you file your return. Your RRSP deduction claim is limited by the amount of RRSP contributions previously made and your RRSP deduction limit.

RRSP deduction limit — the maximum amount you can deduct from contributions you made to your RRSPs or to your spouse's RRSP or common-law partner's RRSP for a year (excluding transfers to your RRSPs of certain types of qualifying income). The calculation is based, in part, on your earned income in the previous year. PAs, PSPAs, PARs, contributions to an SPP, and your unused RRSP deduction room at the end of the previous year are also used to calculate the limit.

RRSP limit — the maximum amount of new RRSP deduction room that you can create for a year and is one of the amounts used to determine your RRSP deduction limit for that year. See Step 3 of Chart 3.

RRSP excess contributions — generally, the amount of your RRSP contributions that is more than your RRSP deduction limit for the year plus $2,000. If you have RRSP excess contributions, you may have to pay a tax of 1% per month on those contributions. For more information, see Tax on RRSP excess contributions.

Specified non-qualified investment income — this is income (including a capital gain) that is reasonably attributable, directly or indirectly, to an amount that is taxable for any RRSP or RRIF of the annuitant (for example, subsequent generation income earned on non-qualified investment income or on income from a business carried on by an RRSP or RRIF).

Specified pension plan (SPP) — a pension plan that you establish but is not registered with us. Many of the rules related to RRSPs also apply to SPPs.

Note
Subsection 248(1) has been updated to include a new definition, the specified pension plan (SPP). It is defined as a "prescribed arrangement" which includes the Saskatchewan pension plan. References to an SPP throughout this guide mean a specified pension plan.

Specified retirement arrangement — a pension plan that we do not register for income tax purposes and that is either not funded or only partly funded.

Spousal or common-law partner RRSP — an RRSP that you establish to pay yourself income at maturity, but that your spouse or common-law partner contributes to.

Spouse — a person to whom you are legally married.

Swap transaction — this is any transfer of property between the RRSP or RRIF and the annuitant (or a person not at arm's length with the annuitant) occurring after June 2011, subject to certain exceptions.

Contributions, distributions and purchase and sale transactions between the RRSP or RRIF and another RRSP or RRIF of the same annuitant are not treated as a swap transaction. An exception is also provided to allow individuals to "swap-out" a non-qualified or prohibited investment provided that the conditions for a refund of the 50% tax on such investments are met. Swap transactions that are undertaken to remove an investment from an RRSP or RRIF that would otherwise result in tax under Part XI.01 if left in the plan are permitted to continue to occur until the end of 2021.

Transitional prohibited investment benefit - this expression is relevant only if an individual held one or more prohibited investments in their RRSP or RRIF on March 23, 2011, and continues to hold the investments in their RRSP or RRIF in the tax year. An individual's transitional prohibited investment benefit for a tax year is the total of any income earned and capital gains realized in the tax year on these investments, less any capital losses realized on these investments in the tax year. For this purpose, the amount of a capital gain realized is the positive difference between the fair market value of the property when it is disposed of by the RRSP or RRIF, or when it ceases to be a prohibited investment (less reasonable costs of disposition, if any) and the fair market value of the property on March 22, 2011. The amount of a capital loss is the negative difference.

Unmatured RRSP - generally, an RRSP that has not yet started to pay you a retirement income.

Unused RRSP contributions - the amount of your RRSP contributions that you could not deduct or have chosen not to deduct and that you did not designate as an HBP or LLP repayment for any year. Using Schedule 7 when you file your tax return for the year, this amount is carried forward to the following year and you can use it as a deduction up to your RRSP deduction limit for that year.

Unused RRSP deduction room at the end of the year - generally, your RRSP deduction limit for the year minus the amount you deducted for RRSP and SPP contributions for that year.

For 2009 and later years, this amount is reduced by contributions you deduct for a year for amounts you contributed in the year to a qualifying retirement plan in the United States for services you rendered as an employee in the United States in the year. For more information, see Other deductions.

Chapter 1 - RPP contributions

This chapter has information about making contributions to your registered pension plan (RPP). Particularly, it will help you calculate the amount you can deduct for RPP contributions if you:

• contribute more than $3,500 to an RPP in 2012 and your information slip shows a past service amount for a period before 1990; or
• contributed an amount in an earlier year, for a period before 1990, and you have not fully deducted the amount contributed.

Current service is a period of service in the year, which is credited under your RPP by your employer. Current service contributions are amounts you contribute for that period of service.

Generally, past service refers to a period of service with an employer in an earlier year that is later credited under the defined benefit provision of your RPP. Past service contributions are amounts you contribute for that period of service. They may also include contributions you make to upgrade benefits for pensionable service you accrued in the past.

You usually make your past service contributions in a lump-sum or by instalments. Your RPP may allow you to directly transfer amounts from other registered plans to pay for the cost of the past service benefits. For more information, see Chapter 6 - Transfers to registered plans or funds and annuities.

For more information on RPP contributions, see Interpretation Bulletin IT-167, Registered Pension Funds or Plans - Employee's Contributions.

Current service and past service contributions for 1990 or later years

On line 207 of your return, you can deduct the amount shown in box 20 of your 2012 T4 slip (if there is no amount in box 74 or 75 in the "Other information" area at the bottom of the slip) or on your union dues receipt. This amount includes:

• current service contributions; and
• past service contributions for 1990 or later years.

You can only deduct these contributions on your 2012 return. You cannot deduct them for any other year.

An amount in box 74 or 75 in the "Other information" area of your T4 slip indicates that part or the entire amount shown in box 20 is for past service before 1990. For more information, see Past service contributions for 1989 or earlier years.

Note
Pension benefits you earn on a past service basis for 1990 or later years may cause a PSPA. For more information, see Past service pension adjustments (PSPAs).

Past service contributions for 1989 or earlier years

Calculate the amount you can deduct for past service contributions to an RPP for 1989 or earlier years based on whether the contributions were for service while you were a contributor or for service while you were not a contributor. Chart 1 will help you determine the type of past service contributions you made for 1989 or earlier years.

Past service contributions you made for 1989 or earlier years appear in boxes 20, 74, and 75 of your 2012 T4 slip, in boxes 032 and 126 of your 2012 T4A slip, or on a receipt that your plan administrator issued.

In some cases, you may be able to deduct for 2012 only part of the past service contributions you made. If this applies, you can the amount you cannot deduct to 2013 or later years. Future versions of this guide will help you calculate the amount you can deduct for 2013 or later years.

If, for 2012, you deduct a carry-forward of past service contributions from an earlier year, attach a statement to your return giving a breakdown of the amount of contributions you claimed for service while you were a contributor and for service while you were not a contributor.

Complete Chart 2 to determine the amount of past service contributions you made for 1989 or earlier years that you can deduct for 2012.

Note
You can deduct a maximum of $3,500 for 2012 for past service contributions made for 1989 or earlier years for service while not a contributor. The total amount you can deduct for all years is limited to $3,500 multiplied by the number of years or part years of service you bought back.

Interest on past service contributions

If you elected after November 12, 1981, to make past service contributions and you make them in instalments, the annual instalment interest you pay is a past service contribution. Include this amount when you calculate how much you can deduct for past service contributions for 2012 on line 207 of your return.

If you elected before November 13, 1981, to make past service contributions, you can deduct the instalment interest you pay each year to your RPP on line 232 of your return, or as part of your past service contributions on line 207. It may benefit you more to deduct the instalment interest on line 232, since there are limits on how much you can deduct on line 207 for past service contributions you made for service in 1989 or earlier years.

Excess contributions for current service made from 1976 to 1985

You may have made current service contributions exceeding $3,500 in one or more years from 1976 to 1985, where you could not have fully deducted the amount in excess of $3,500 for the years you contributed them or following years. If you still have these excess contributions that you could not deduct, call 1-800-959-8281 to find out how to calculate your deduction claim for these amounts.

Other deductions

The Income Tax Act allows you to deduct repayments you make to your RPP in certain circumstances. Currently, this applies to you only if you participate in an RPP under one of the following acts:

• the Public Service Superannuation Act; or
• the Royal Canadian Mounted Police Superannuation Act.

For more information, call 1-800-959-8281.

Note
Generally, you cannot deduct contributions you made to pension plans in other countries. However, Canada has entered into income tax conventions or agreements, commonly known as tax treaties, with many countries that allow a deduction on your Canadian income tax return for some of those contributions. If you have contributed to a pension plan in another country, call the International Enquiries for Individuals and Trusts at one of the following numbers: 1-855-284-5942 (toll free within Canada and the Continental U.S.), or 613-940-8495 (from outside Canada and the Continental U.S.-we accept collect calls).

Canada-U.S. Commuters - For 2009 and later years, a resident of Canada who works in the U.S. (commonly referred to as a "commuter"), and is a member of a qualifying retirement plan in the U.S. can deduct their contributions to that plan on their Canadian income tax and benefit return, as long they meet certain conditions and respect certain limits.

The maximum amount that you can deduct for a year is the contributions you made in the year that are attributable to the work you performed in the year. This maximum is further limited to your RRSP deduction limit for the year after reducing that limit by any RRSP contributions that you deducted for the year.

The qualifying retirement plan contributions you deduct for the year also reduce your unused RRSP deduction room at the end of the year that is carried forward and included in your following year's RRSP deduction limit.

Depending on your situation, you will have to complete either Form RC267, Employee Contributions to a United States Retirement Plan for 2012- Temporary Assignments; Form RC268, Employee Contributions to a United States Retirement Plan for 2012 - Cross-Border Commuters; or Form RC269, Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2012 - Non-United States Plans or Arrangements. These forms are available at Forms and publications.

Pension Repayments - Under proposed changes, for the 2009 and later tax years, an individual can claim a deduction equal to the amount if he or she repays to a registered pension plan (RPP) an overpayment of an amount received from the RPP that was included in his or her income for the year, or a preceding year. The repayment must be for an amount that may reasonably be considered to have been paid from the RPP in error and not as an entitlement to benefits under the RPP. The individual cannot claim a deduction for the repayment if he or she is already claiming a deduction for this amount as a contribution to the RPP.

Chart 1 - Buying back service or upgrading past service benefits for 1989 or earlier years - How do you determine if your RPP past service contribution is for service while you were a contributor or for service while you were not a contributor? Use this chart to determine the type of period your contribution relates to. You can then use Chart 2 to calculate the amount you can deduct for that type of contribution.
Step 1 Does your past service contribution relate to any year in which you were contributing to any RPP? If yes, go to Step 2. If no, your past service contribution is for service while not a contributor. Skip Steps 2 and 3 below and complete Area B of Chart 2 to calculate the amount you can deduct for this contribution.	Example - Miles joined TTM Company's RPP on February 4, 2012. This RPP allowed Miles to buy back 12 years of past service with CCD Company, a previous employer. During those 12 years (1977 to 1988), Miles contributed to CCD Company's RPP. Miles answers yes to this question because the past service contribution that he made in 2012 relates to a period of service while he contributed to CCD Company's RPP. Example - Justin became a member of XTJ Company's RPP in January 1990. He started working for XTJ in June 1989, but did not contribute to any RPP in 1989. In 2012, XTJ's RPP allows Justin to buy back his 1989 service with the company for $2,500. Justin answers no to this question because he did not contribute to any RPP in 1989. Justin's $2,500 contribution is for service while not a contributor.
Step 2 Did you make the past service contribution to the same RPP (and for the same year) that you contributed to during 1989 or an earlier year? If yes, your past service contribution is for service while a contributor. Skip Step 3 below and complete Area C of Chart 2 to calculate the amount you can deduct for this contribution. If you answer no, go to Step 3.	Example - Vern has been employed with YYW Ltd. since 1980 and has contributed to his employer's RPP ever since. In 2012, Vern makes a past service contribution of $8,000 to upgrade past service benefits that were previously credited under the RPP from 1980 to 1988. Vern answers yes to this question because he made the past service contribution to the same RPP that he contributed to from 1980 to 1988. Vern's $8,000 contribution is for service while a contributor. Example - Avery changed employers in May 1987 and became a member of her new employer's RPP. She was a member of a different RPP from May 1980 until May 1987. Avery's new employer's RPP allowed her to buy back the past service with her previous employer. Avery bought this service in July 1987. Avery answers no to this question because she did not make the past service contribution to the same RPP that she contributed to from May 1980 to May 1987.
Step 3 Does one of the following statements apply to you? You made the past service contribution before March 28, 1988. You made the past service contribution under the terms of a written agreement entered into before March 28, 1988. If you answer yes to one of the above statements, your past service contribution is for service while not a contributor. Complete Area B of Chart 2 to calculate the amount you can deduct for this contribution. If you answer no to both of the above statements, your past service contribution is for service while a contributor. Complete Area C of Chart 2 to calculate the amount you can deduct for this contribution.	Example - Tracey joined DEF Company's RPP on January 15, 1988. This RPP allowed Tracey to buy back her six years of past service with ABC Company, her previous employer. During those six years, Tracey contributed to ABC Company's RPP. The ABC Company's RPP had a portability arrangement. Tracey entered into a written agreement on March 1, 1988, to buy back those six years of past service. Tracey has to contribute $1,000 each year for 15 years to pay for this service. Tracey answers yes, since one of the statements applies to Tracey (she made the past service contribution under the terms of a written agreement she entered into before March 28, 1988), her $1,000 yearly contribution is for service while not a contributor. Example - Martha is a member of her current employer's RPP. She entered into an agreement on April 12, 1990, to buy back (for $12,000) past service benefits for a period of service in 1988 and 1989 with another employer when she contributed to a different RPP. Martha answers no, since both statements don't apply to Martha (she did not make the past service contribution before March 28, 1988, and she did not make the past service contribution under the terms of a written agreement entered into before March 28, 1988), her $12,000 contribution is for service while a contributor.

Calculating your 2012 deduction for your RPP contributions

Example
Mark has been working for his employer and has participated in the company's RPP since 1997. He had previously worked for his current employer from 1984 to 1994. The pension plan would allow Mark to have that entire period of past service to be recognized as pensionable service if he chose to. In Mark's plan, the past service is broken into periods before 1990 while he was contributor and while he was not a contributor, and for his service after 1989.

For the period of service of 1984 to 1986, Mark was not a contributor to an RPP at that time, and the plan requires that he pay his and the employer’s share to fund the past service; this amount is $12,000.

For the period of 1987 to 1989, Mark was a contributor to the RPP at that time, and it only requires that he pay his share to fund the past service; this amount is $13,500.

Likewise, the period from 1990 to 1994, Mark was contributing to the RPP and it only requires that he fund his portion for the past service, an amount of $18,500. The total cost to Mark for his past service request will be $44,000. The plan would allow him to fund this past service with a cash payment and/or a transfer of funds from another registered plan, like an RRSP.

In order to buy back his past service, Mark makes a cash payment of $44,000 in 2012. Mark will receive a T4A slip showing $44,000 in box 032 for the total past service contributions, with $25,500 reported in box 126 for the past service contributions Mark made for 1989 or earlier years.

Mark is a member of the RPP and has current (2012) service contributions of $5,000. With his past service contributions, his total contribution for service that relates to 1990 or later years is $23,500 ($18,500 + $5,000).

Mark completes Chart 2 to properly calculate the amount of contributions that he can deduct from income for 2012.

Area A calculates the amount of contributions for service that relates to 1990 or later years that is deductible for 2012. The amount on line 3 is entirely deductible for 2012. For Mark this amount is $23,500.

Area B calculates the amount of contributions for service that relates to 1989 or earlier years while not a contributor that is deductible for 2012. For Mark the amount that is deductible for 2012 is $3,500. Mark will be able to claim $ 3,500 in each year for 2013, 2014 and 2015. The maximum total amount he can deduct for all years is limited to $3,500 multiplied by the number of years he bought back.

Area C calculates the amount of contributions for service that relates to 1989 or earlier years while a contributor that is deductible for 2012. For Mark the amount that is deductible for 2012 is $0. Once he no longer claims any deductions under Areas A and B, Mark will be able to deduct $3,500 each year until his $13,500 contribution is fully deducted.

Area D summarizes the total amount from Parts A, B and C and calculates the amount that can be deducted from income for 2012.

Chapter 2 - RRSP contributions

This chapter has general information on contributing to your RRSPs or your spouse's RRSPs or common-law partner's RRSPs and lists your options if you contribute more than the amount you can deduct. This chapter also applies to you if you want to know how to calculate your 2012 RRSP deduction limit. The rules we explain in this chapter apply to all RRSPs.

March 1, 2013, is the deadline for contributing to an RRSP for the 2012 tax year.

A contribution made by an individual after 2009 to an account under the SPP is considered to be a contribution made by the individual to an RRSP.

Note
Subsection 248(1) has been updated to include a new definition, the specified pension plan (SPP). It is defined as a "prescribed arrangement" which includes the Saskatchewan pension plan. References to an SPP throughout this guide mean a specified pension plan.

Canada Savings Bonds - You can transfer your holdings of past series compound-interest Canada Savings Bonds to your RRSPs or your spouse's or common-law partner's RRSPs. The amount you transfer is considered a contribution to the RRSP. For more information, contact your RRSP issuer.

Self-directed RRSPs - If you want to, you can control the assets of your RRSP and make the investment decisions yourself. Your financial institution can tell you if it offers self-directed RRSPs. The issuer (such as a bank, credit union, trust, or insurance company) can take care of the administrative details, including getting the plan registered, receiving the amounts you contribute, and trading securities. Securities cannot be held in your own name.

Qualified Investments - Common types of qualified investments for a trust governed by an RRSP or RRIF include: money, guaranteed investment certificates (GICs), government and corporate bonds, mutual funds, and securities listed on a designated stock exchange.

For more information, see Interpretation Bulletin IT-320, Qualified Investments - Trusts Governed by Registered Retirement Savings Plans, Registered Education Savings Plans and Registered Retirement Income Funds, or contact your RRSP issuer.

You should pay particular attention to the type of investments you choose for the plan. If you buy non-qualified investments in your RRSP or if qualified investments held in your RRSP become non-qualified, there are tax implications.

Enhancements were made to the existing tax rules that apply when an RRSP or RRIF acquires a non-qualified investment. The enhancements also include the introduction of a special tax on the annuitant of an RRSP or RRIF that acquires a prohibited investment. For more information on anti-avoidance rules, see Chapter 4 - Anti-avoidance rules for RRSPs and RRIFs.

How do you claim your RRSP deduction?

On line 208 of your return, you can deduct the RRSP contributions you made up to the limits we explain in the following sections.

Your RRSP issuer will give you a receipt for the amounts you contributed. If you contributed to your spouse's or common-law partner's RRSP, the receipt should show your name as the contributor and your spouse's or common-law partner's name as the annuitant. Attach the receipt(s) with your paper return to support the amount you deducted. If you are using EFILE, show your receipts to your service provider and keep them in case we ask to see them. If you are using NETFILE , also keep your receipts in case we ask to see them. If you do not get your receipts before the filing deadline, see section "What if you are missing information?" in the General Income Tax and Benefit Guide for more information.

If you deduct an amount for 2012 that you contributed to an RRSP from March 2, 1995, to March 1, 2012, which you had not previously deducted, you should have completed and filed a Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities, for these contributions. If you did not, you should submit a completed copy of the appropriate Schedule 7, along with the appropriate RRSP receipts, to your tax centre, separate from your 2012 tax return.

Age limit for contributing to an RRSP

The year you turn 71 is the last year in which you can make a contribution to your RRSP.

You can contribute to an RRSP under which your spouse or common-law partner is the annuitant until the end of the year your spouse or common-law partner turns 71.

Contributing to your RRSPs

This section will help you determine how much of your RRSP contributions you can deduct on line 208 of your 2012 return.

How much can you deduct?

The amount of RRSP contributions that you can deduct for 2012 is based on your 2012 RRSP deduction limit, which appears on your latest notice of assessment or notice of reassessment, or on a T1028, Your RRSP Information for 2012.

You can also deduct amounts for contributions you make for certain income you transfer to your RRSP. Your RRSP deduction limit is not reduced by these amounts. For more information on transfers, see Chapter 6 - Transfers to registered plans or funds and annuities.

Any income you earn in your RRSP is usually exempt from tax for the time the funds remain in the plan. However, you cannot claim a deduction for capital losses within your RRSP.

You cannot claim a deduction for amounts you pay for administration services for an RRSP. Also, you cannot deduct brokerage fees charged to buy and dispose of securities within a trusteed RRSP.

If we reassess a previous year's return, your revised 2012 RRSP deduction limit will appear on your notice of reassessment or in some cases on a T1028, Your RRSP Information for 2012. We will also send you a T1028 with a new RRSP deduction limit if your RRSP deduction limit has changed for reasons other than a reassessment of a previous year's return.

If you do not have a copy of your notice or a T1028, you can find out the amount of your RRSP deduction limit by going to My Account, Quick Access or by calling our automated TIPS RRSP service. For more information, see My Account and Tax Information Phone Service (TIPS).

Note
If you are a Canadian who works in the United States, see Other deductions.

Calculating your 2012 RRSP deduction limit

Your 2012 RRSP deduction limit is shown on the latest notice of assessment or notice of reassessment or T1028 we sent you after we processed your 2011 return. We determined your limit from information on your 2011 and previous year's returns, and from information we keep on record. If any of that information changes, your 2012 RRSP deduction limit may also change. In most cases, we will tell you about any change to your 2012 RRSP deduction limit.

You can also find out your deduction limit by registering for My Account. Once you've registered, you can access your RRSP Deduction Limit Statement online. You can also use Quick Access (see My Account).

If you want to calculate your 2012 RRSP deduction limit, use Chart 3.

Note
The RRSP limit for 2012 is $22,970. However, your 2012 RRSP deduction limit may be more than $22,970 if you did not use your entire RRSP deduction limit for the years 1991 to 2011. Your unused RRSP deduction room will be carried forward to 2012. For more information, see Unused RRSP contributions.

Contributions you can deduct for 2012

For 2012, you can deduct contributions you made to your RRSP from January 1, 1991, to March 1, 2013. You can deduct these contributions if you did not deduct them for any other year, and if they are not more than your RRSP deduction limit for 2012. Even if you can no longer contribute to your RRSP in 2012 because of your age, you can deduct your unused RRSP contributions up to your RRSP deduction limit.

Note
You cannot deduct the interest you paid on money you borrowed to contribute to an RRSP.

The HBP and the LLP - If you participate in the HBP or LLP, you may not be able to deduct, for any year, all or part of the contributions you made to your RRSP during the 89-day period just before you withdrew an amount under either of these plans. To determine the part of the contributions you made to your RRSP that you cannot deduct, see Guide RC4135, Home Buyers' Plan (HBP) or Guide RC4112, Lifelong Learning Plan (LLP), whichever applies.

Contributing to your spouse's or common-law partner's RRSP

This section applies to you if you contribute to an RRSP for your spouse or common-law partner. Generally, the total amount you can deduct on line 208 of your 2012 return for contributions you make to your spouse's RRSP or common-law partner's RRSP and your RRSP cannot be more than your 2012 RRSP deduction limit.

Example
Joey's 2012 RRSP deduction limit is $10,000. Joey contributes $4,000 to his RRSP in 2012, and $6,000 to his common-law partner Ghislaine's RRSP in 2012. Joey deducts the $4,000 he contributed to his RRSP on line 208 of his 2012 return. Although Joey contributed $6,000 to his common-law partner's RRSP in 2012, he decides to only deduct $5,500 of this contribution on his 2012 return. He may be able to deduct the remaining $500 ($10,000 - $9,500) on a future year's tax return. To find out what other options are available, see Unused RRSP contributions.

If you cannot contribute to your RRSP because of your age, you can still contribute to your spouse's RRSP or common-law partner's RRSP until the end of the year he or she turns 71.

Contributions made after death - No contributions can be made to a deceased individual's RRSP after the date of death. However, the deceased individual's legal representative can make contributions to the surviving spouse's RRSP or common-law partner's RRSP in the year of death or during the first 60 days after the end of that year. Contributions made to a spouse's RRSP or common-law partner's RRSP can be claimed on the deceased individual's return up to that individual's RRSP deduction limit for the year of death.

Example
Dave died in August 2012. His 2012 RRSP deduction limit is $7,000. Before he died, Dave did not contribute to either his RRSP or his wife's RRSP for 2012. His wife Paula is 66 years old in 2012. On Dave's behalf, his legal representative can contribute up to $7,000 to Paula's RRSP for 2012. The legal representative can then claim an RRSP deduction of up to $7,000 on line 208 of Dave's 2012 final return.

Note
If you contributed amounts to your spouse's RRSP or common-law partner's RRSP in  2010, 2011 or 2012, you may have to include in your 2012 income all or part of the amount your spouse or common-law partner withdrew in 2012 from his or her spousal or common-law partner RRSP. For more information, see Amounts from an SPP account or amounts from a spousal or common-law partner RRSP or RRIF.

The HBP and the LLP - If your spouse or common-law partner participates in the HBP or LLP, you may not be able to deduct, for any year, all or part of the contributions you made to your spouse's RRSP or common-law partner's RRSP during the 89-day period just before your spouse or common-law partner withdrew an amount under either of these plans. To determine the part of the contributions you made to your spouse's RRSP or common-law partner's RRSP that you cannot deduct, see Guide RC4135, Home Buyers' Plan (HBP) or Guide  RC4112, Lifelong Learning Plan (LLP), whichever applies.

If you have a payment arrangement contract with a financial institution to make RRSP contributions, you can use Form T1213, Request to Reduce Tax Deductions at Source for Year(s) ____, to request authorization for your employer to reduce your tax deductions at source.

Keeping track of your RRSP contributions - Schedule 7

Use Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities, to keep track of your RRSP contributions.

If you made contributions to your RRSP or your spouse's or common-law partner's RRSP from March 1, 2012, to March 1, 2013, and you are not deducting the total contributions on your 2012 return, attach a completed Schedule 7 to your 2012 return. If you have already filed your return, complete Schedule 7 and send it to your tax centre with your RRSP receipts and a note showing your name and social insurance number.

You may not have to complete Schedule 7. To find out, read the information at the top of the schedule. If you do have to complete it, you will find information below about lines 1, 2, 3, 6, 7, 10, 11, and 15 to 18.

Line 1 - Unused RRSP contributions

These are amounts you contributed to your own RRSP or to an RRSP for your spouse or common‑law partner after 1990 but did not deduct on line 208 of any previous return or designate as an HBP or an LLP repayment. The total of these amounts is identified as amount (B) of your 2012 RRSP Deduction Limit Statement shown on your latest notice of assessment, notice of reassessment, or T1028, Your RRSP Information for 2012, if you showed them on a previous year’s Schedule 7.

If you do not have your notice of assessment, notice of reassessment, or T1028, you can find out if you have unused RRSP contributions by going to My Account or by calling our Tax Information Phone Service (TIPS).

Notes
If there are unused RRSP contributions you made from March 2, 2011, to February 29, 2012, you should have filed a completed Schedule 7 with your 2011 paper return. If you did not, you should submit your receipts and a completed copy of a 2011 Schedule 7 to your tax centre, but do not include them with your return for 2012.

If there are unused contributions you made from January 1, 1991, to March 1, 2011, but did not show on a Schedule 7 for 2010 or earlier, contact us.

Lines 2 and 3 - Total RRSP contributions

This total includes amounts you:

• contributed to your own RRSP or an RRSP for your spouse or common‑law partner from March 1, 2012, to March 1, 2013;
• contributed to your account, or your spouse or common‑law partner’s account, under an SPP from March 1, 2012 to March 1, 2013;
• transferred to your own RRSP (see Line 11 - Transfers; and
• designated as HBP or LLP repayments (see Lines 6 and 7 - Repayments under the HBP and the LLP.

Include on these lines all contributions you made from January 1, 2013, to March 1, 2013, even if you are not deducting or designating them on your return for 2012. Otherwise, we may reduce or disallow your claim for these contributions on your return for a future year.

Do not include the following amounts:

• Any unused RRSP contributions you made after February 29, 2012, refunded to you or your spouse or common‑law partner in 2012. Report the refund on line 129 of your return for 2012. You may be able to claim a deduction on line 232. For more information, see Unused RRSP contributions.
• Part or all of the contributions you made to your RRSP or an RRSP for your spouse or common‑law partner less than 90 days before either of you withdrew funds from that RRSP under the HBP or the LLP. For more information, see Guide RC4135, Home Buyers’ Plan (HBP) or Guide RC4112, Lifelong Learning Plan (LLP).
• Contributions you made to your RRSP used to cancel a withdrawal under the HBP or LLP.
  
  

  Note
  You cannot withdraw funds from an SPP under the LLP or the HBP. However, an SPP contribution can be designated as an LLP or an HBP repayment.

• Any payment directly transferred to your RRSP if you did not receive an information slip for it or if it is shown in box 35 of your T4RSP or T4RIF slips.
• The part of an RRSP withdrawal you recontributed to your RRSP and deducted on line 232. This would have happened if, in error, you withdrew more RRSP funds than necessary to obtain past‑service benefits under an RPP.
• The excess part of a direct transfer of a lump‑sum payment from your RPP to an RRSP or RRIF you withdrew and are including on line 129 or 130 of your return for 2012 and deducting on line 232.

Lines 6 and 7 - Repayments under the HBP and the LLP

If you withdrew funds from your RRSP under the HBP before 2011, you have to make a repayment for 2012. If you withdrew funds from your RRSP under the LLP before 2011, you may have to make a repayment for 2012. In either case, your 2012 minimum required repayment is shown on your latest notice of assessment, notice of reassessment, or T1028, Your RRSP Information for 2012.

To make a repayment for 2012, contribute to your own RRSP from January 1, 2012, to March 1, 2013, and designate your contribution as a repayment on line 6 or 7 of Schedule 7. Do not include an amount you deducted or designated as a repayment on your 2011 return or that was refunded to you. Do not send your repayment to us. You cannot deduct any RRSP contribution you designate as an HBP or an LLP repayment on Schedule 7. To view your HBP or LLP information, go to My Account.

Note
If you repay less than the minimum amount for 2012, you have to report the difference on line 129 of your return.

Line 10 - RRSP contributions you are deducting for 2012

Your RRSP deduction limit for 2012 is shown on line A of your latest notice of assessment, notice of reassessment, or T1028, Your RRSP Information for 2012, if we sent you one. You can carry forward indefinitely any part of your RRSP deduction limit accumulated after 1990 that you do not use.

If you do not have your notice of assessment, notice of reassessment or T1028, you can find out your limit for 2012 by going to My Account or by calling our Tax Information Phone Service.

If you would like to calculate your RRSP deduction limit for 2012, use Chart 3.

Note
In a previous year, you may have received income for which you could contribute to an RRSP, but you may not have filed a return for that year. If you want to keep your RRSP deduction limit up to date, you have to file a return for that year.

Line 11 - Transfers

You may have reported income on line 115, 129, or 130 of your return for 2012. If you contributed certain types of this income to your own RRSP on or before March 1, 2013, you can deduct this contribution, called a transfer, in addition to any RRSP contribution you make based on your "RRSP deduction limit for 2012."

For example, if you received a retiring allowance in 2012, you would report it on line 130 of your return. You can contribute to your RRSP up to the eligible part of that income (box 66 of your T4 slips or box 47 of your T3 slips) and deduct it as a transfer. Include the amounts you transfer on lines 2 or 3 and 11 of Schedule 7.

For more information about amounts you can transfer, see Chapter 6 - Transfers to registered plans or funds and annuities.

Lines 15 to 18 - 2012 withdrawals under the HBP and the LLP

On line 15, enter the total of your HBP withdrawals for 2012 from box 27 of your T4RSP slips. In addition, tick the box at line 16 if the address of the home you acquired with these withdrawals is the same as the address on page 1 of your return.

On line 17, enter the total of your LLP withdrawals for 2012 from box 25 of your T4RSP slips. In addition, tick the box at line 18 to designate that your spouse or common‑law partner was the student for whom the funds were withdrawn. If you do not tick the box, you will be considered to be the student for LLP purposes. You can change the person you designate as the student only on the return for the year you make your first withdrawal.

The guides RC4135, Home Buyers’ Plan (HBP), and RC4112, Lifelong Learning Plan (LLP), include more information about:

• when you have to make your repayments; and
• the rules that apply when the person who made the withdrawal dies, turns 71 years of age, or becomes a non‑resident.

2011 and earlier years - If you made contributions in the first 60 days of 2012 or an earlier year, and you did not claim them for the previous year, you should have completed and filed a Schedule 7 for that previous year. If you did not file a Schedule 7 when it was required, complete one and submit it to your tax centre. By doing so, you will avoid having your deduction reduced or disallowed for contributions made in the first 60 days of the year or in an earlier year. If you have not already filed your RRSP receipts, submit them with your Schedule 7. If you did not receive a copy of Schedule 7 with your income tax and benefit package, you can get one from our Web site at Forms and Publications, or by calling us at 1-800-959-2221.

Note
You may have to pay a special tax if you have RRSP excess contributions. For more information, see Tax on RRSP excess contributions.

Unused RRSP contributions

This section applies to you if you did not use all of your RRSP contributions as a deduction in the year you made them or in the preceding year. It does not apply to contributions that were designated as repayments under the HBP or the LLP, or contributions that were used to cancel an LLP or HBP withdrawal. Your unused RRSP contributions from previous years will be on your RRSP Deduction Limit Statement shown on your latest notice of assessment, notice of reassessment or a T1028. To report new unused contributions, you have to file Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities, with your return. For more information, see Keeping track of your RRSP contributions - Schedule 7.

If you did not deduct all of the contributions you made to your RRSP or your spouse's or common-law partner's RRSP in 1991 and later years, you have two options: you can leave the unused contributions in the plan or you can withdraw them. In either case, you may have to pay a 1% per month tax on the part of your unused contributions that are excess contributions. For more information, see Tax on RRSP excess contributions.

Withdrawing the unused contributions

If you withdraw the unused contributions, you have to include them as income on your return. However, you may be able to deduct an amount equal to the withdrawn contributions that you include in your income, if you or your spouse or common-law partner received the unused RRSP contributions from an RRSP or RRIF:

• in the year you contributed them;
• in the following year; or
• in the year that you were sent a notice of assessment or notice of reassessment for the year you contributed them, or in the following year.

You can deduct the amount if you meet all of the following conditions:

• You have not deducted, for any year, the unused contributions that you made to your RRSP or to your spouse's or common-law partner's RRSP.
• You have not designated the withdrawal of the unused RRSP contributions as a qualifying withdrawal to have your PSPA certified.
• No part of the withdrawn contributions was a lump-sum payment from an RPP, or certain DPSP amounts that you transferred directly to an RRSP. For more information, see Direct transfer of an RPP lump-sum payment.
• No part of the withdrawn contributions was a lump-sum payment from the SPP that you transferred directly to an RRSP.

In addition, it has to be reasonable for us to consider that at least one of the following applies:

• you reasonably expected to be able to fully deduct the RRSP contributions for the year you made the contributions or the immediately preceding year; or
• you did not make the unused RRSP contributions intending to withdraw them and deduct an offsetting amount.

Withdrawal made using Form T3012A, Tax Deduction Waiver on the Refund of Your Unused RRSP Contributions made in____ - If you meet all of the previous conditions and have not already withdrawn the unused contributions, you can withdraw them without having tax withheld. To do this, complete Form T3012A. This form cannot be used to withdraw unused RRSP contributions that were transferred to a RRIF. To make a withdrawal from a RRIF, see Withdrawal made without Form T3012A below.

If the unused RRSP contributions are withdrawn based on a Form T3012A we approved, do the following:

• Attach a copy of that form and the related T4RSP slip to your return.
• Report the amount shown in box 20 of your or your spouse's or common-law partner's 2012 T4RSP slip on line 129 of your return. For more information, see Calculating the income you and your spouse or common-law partner have to report.
• Deduct an amount on line 232 of your return equal to the unused contributions withdrawn.

Withdrawal made without Form T3012A - If you withdraw unused RRSP contributions without Form T3012A, the issuer of the plan has to withhold tax. The amount you withdraw should be reported on line 129 of your return if it appears in box 22 of the T4RSP slip. If the amount appears in box 16 and box 24 of the T4RIF slip and you are 65 years or older at the end of December 2012, report the amount from box 16 on line 115. Otherwise, report that amount on line 130.

In either case, claim the tax the issuer withheld on line 437 of your return.

Complete Form T746, Calculating Your Deduction for Refund of Unused RRSP Contributions, to calculate the amount you can deduct for the withdrawal. See line 232 in the General Income Tax and Benefit Guide for more information about claiming the deduction for the withdrawal of unused RRSP contributions.

Tax on RRSP excess contributions

Generally, you have RRSP excess contributions if your unused contributions from prior years and your current calendar year contributions are more than your RRSP deduction limit shown on your latest notice of assessment, notice of reassessment, or a T1028, Your RRSP information for 2012, plus $2,000.

The $2,000 is reduced when you have a negative RRSP deduction limit which may be due to a PSPA amount. Also, you can only qualify for the additional $2,000 amount if you were 19 or older at any time in 2012.

Generally, you have to pay a tax of 1% per month on your unused contributions that exceed your RRSP deduction limit by more than $2,000. Your notice of assessment or notice of reassessment will indicate that you may have to pay a 1% tax on RRSP excess contributions if your unused RRSP contributions exceed your RRSP deduction limit. However, if you withdrew the excess amounts, or all your contributions were qualifying group RRSP contributions, or from contributions that you made before February 27, 1995, you may not have to pay this 1% tax on all your excess contributions.

Follow the six-step process described in Chart 4 to determine if you have to complete Form T1-OVP, 2012 Individual Tax Return for RRSP Excess Contributions, which is the form used to calculate the amount subject to tax and the tax payable.

If you determine that you have to pay this 1% tax, you have to file your completed T1-OVP return and pay the tax no later than 90 days after the end of the year in which you had the excess contributions.

Penalties - If you owe tax in a year and do not file your return within 90 days after the end of that year, we will charge you a late-filing penalty. The penalty is 5% of your balance owing, plus 1% of your balance owing for each month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if we charged you a late-filing penalty on Form T1-OVP return for any of three previous years.

Attach your payment to your completed T1-OVP return and submit it to your tax centre. If you do not pay your tax by the deadline, you may also have to pay arrears interest on any unpaid amount.

Interest - If you have a balance owing in a year, we charge compound daily interest starting on the 91st day (ordinarily April 1) of the following year on any unpaid amounts owing for that year. This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties indicated in the previous section, starting on that 91st day.

Voluntary disclosure - You may have had to file a previous year return, but you have not sent it or you sent us an incorrect return. If so, you can voluntarily file or correct that return under the Voluntary Disclosures Program, and pay only the taxes owing (plus interest) without penalty.

Note
This program does not apply to any return for which we have started a review.

For more information, and to see if your disclosure qualifies for this program, see Information Circular IC00-1, Voluntary Disclosures Program.

Be sure to indicate clearly, on any disclosure you make, that you are submitting information under the Voluntary Disclosures Program.

Which return do you have to use?

• If you have RRSP excess contributions made from February 27, 1995, to December 31, 2012, that are subject to tax, complete Form T1-OVP-S, 2012 Simplified Individual Tax Return for RRSP Excess Contributions, for each applicable tax year.

• If you have RRSP excess contributions made from January 1, 1991, to February 26, 1995 inclusively or, you made mandatory contributions to a group RRSP in 2011 or 2012 that are subject to tax, you must complete Form T1-OVP, 2012 Individual Tax Return for RRSP Excess Contributions, for each applicable tax year.

Waiver of the RRSP excess contribution tax - If you determined that you must pay a tax on your RRSP excess contributions, you may ask in writing that we waive the tax if:

• your excess contributions on which the tax is based arose due to a reasonable error; and
• you are taking, or have taken, reasonable steps to eliminate the excess contributions.

To consider your request, we will need a letter from you that explains:

• why you made excess contributions and why this is a reasonable error; and
• the steps you are taking, or have taken, to eliminate the excess contributions.

All supporting documents should be included with your letter, such as copies of your RRSP or RRIF account statements that identify the date you withdrew your excess contributions, as well as any other correspondence that shows that your excess contributions arose due to a reasonable error.

For relief from the assessment of late-filing penalties and interest, see Information Circular IC07-1 Taxpayer Relief Provisions.

Chart 4 - Do you have to complete a 2012 T1-OVP return? If you follow the chart below and arrive at a point where we say, "You do not have to complete a 2012 T1-OVP," you are not subject to the 1%-per-month tax. If your 2012 RRSP deduction limit includes a net PSPA for 2012 or your unused RRSP deduction limit at the end of 2011 is a negative amount, complete a 2012 T1-OVP return to determine if you are subject to the 1%-per-month tax. If you are not subject to this tax for 2012, you may be subject to it for 2013.
Situation	Action
Step 1 - Does one of these situations apply to you? You contributed amounts to your RRSP or your spouse's RRSP or common-law partner's RRSP from January 1, 1991, to December 31, 2012, that you did not and will not deduct on line 208 on your 2012 or earlier year returns. A gift was made to your RRSP from January 1, 1991, to December 31, 2012. A gift is any amount that someone other than you or your spouse or common-law partner contributed to your RRSP.	If one of these situations applies to you, go to Step 2. If neither of these situations applies to you, you do not have to complete a 2012 T1-OVP.
Step 2 - Is your 2012 RRSP deduction limit from your latest notice of assessment, notice of reassessment or T1028, Your RRSP Information for 2012, more than the total of your unused RRSP contributions (including gifts) made from January 1, 1991, to December 31, 2011, plus the total of any RRSP contributions (including gifts) made during 2012?	If no, go to Step 3. If yes, you do not have to complete a 2012 T1-OVP.
Step 3 - Were you younger than 19 at any time in 2012?	If no, go to Step 4. If yes, you may be subject to tax on your unused RRSP contributions. Complete a 2012 T1-OVP-S to determine the amount of this tax.
Step 4 - Are your unused RRSP contributions (including gifts) made from January 1, 1991, to December 31, 2012, less than the total of your 2012 RRSP deduction limit from your latest notice of assessment or notice of reassessment plus $2,000?	If no, go to Step 5. If yes, you do not have to complete a 2012 T1-OVP.
Step 5 - Do any of these situations apply to you? At the end of 2012, all of your unused RRSP contributions (including gifts) were made before February 27, 1995. All of your unused RRSP contributions (including gifts) were made from January 1, 1991, to February 26, 1995, and their total was $8,000 or less. You did not contribute to an RRSP from February 27, 1995, to December 31, 2012.	If all of these situations apply to you, you do not have to complete a 2012 T1-OVP. If one of these situations does not apply to you, go to Step 6.
Step 6 - Were all the unused contributions mandatory contributions made in 2012 as a result of your participation in a qualifying group RRSP?	If yes, you do not have to complete a 2012 T1-OVP. If no, you may be subject to tax on your unused RRSP contributions. Complete a 2012 T1-OVP to determine the amount of this tax.

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Chapter 3 - RRIF contributions

This chapter provides general information about RRIFs and lists the types of payments you can contribute to your RRIF. Usually, you can only contribute to your RRIF by directly transferring certain types of payments you receive or are considered to have received.

You can have more than one RRIF and you can have self-directed RRIFs. The rules that apply to self-directed RRIFs are generally the same as those for RRSPs. For more information, see Self-directed RRSPs.

Property from an RRSP

You can contribute to your RRIF by having property transferred directly from:

• your unmatured RRSP;
• your matured RRSP, including a direct transfer of a commutation payment from your RRSP annuity; or
• an unmatured RRSP under which your current or former spouse or common-law partner is the annuitant, if you and your current or former spouse or common-law partner was living separate and apart at the time of the transfer and if the transfer is made:
  

  -	under a decree, order, or judgment of a court, or under a written separation agreement; and
  -	to settle rights arising out of your relationship on or after the breakdown of your relationship.

In addition, you can contribute to your RRIF any amounts you receive or are considered to have received from a deceased annuitant's RRSP or SPP in the following situations:

• The annuitant under an RRSP dies and, at the time of death, you were the deceased annuitant’s spouse or common-law partner.
• You were a financially dependent child or grandchild of the deceased annuitant who depended on the annuitant because of an impairment in physical or mental functions. For more information, see Information Sheet RC4177, Death of an RRSP Annuitant, or Form T2019, Death of an RRSP Annuitant - Refund of Premiums for 20__ .

RPP payments

You can contribute to your RRIF by directly transferring a lump-sum payment from:

• an RPP under which you are a member, if you are entitled to receive the lump-sum;
• an RPP under which your current or former spouse or common-law partner was the member, if you are entitled to receive the lump-sum because your current or former spouse or common-law partner died; or
• an RPP under which your current or former spouse or common-law partner is a member, if you are entitled to receive the lump-sum under the following conditions:
  

  -	under a decree, order, or judgment of a court, or under a written separation agreement; and
  -	to settle rights arising out of your relationship on or after the breakdown of your relationship.

Note
In some cases, the Income Tax Act limits how much can be transferred without tax consequences. For more information, see Direct transfer of an RPP lump-sum payment.

DPSP payments

Under proposed changes, you will be able to contribute to your RRIF by directly transferring a lump-sum payment from:

• a DPSP under which you are a member, or former member, if you are entitled to receive the lump-sum;
• a DPSP under which your current or former spouse or common-law partner was the member, or former member, if you are entitled to receive the lump-sum because your current or former spouse or common-law partner died; or
• a DPSP under which your current or former spouse or common-law partner is a member, or former member, if you are entitled to receive the lump-sum:
  

  -	under a decree, order, or judgment of a court, or under a written separation agreement; and
  -	to settle rights arising out of your relationship on or after the breakdown of your relationship.

  
  

For exceptions to the direct transfer requirement and other rules, see Interpretation Bulletin  IT-528, Transfers of Funds Between Registered Plans.

Property from another RRIF

You can contribute to your RRIF by directly transferring property from:

• another RRIF under which you are the annuitant; or
• a RRIF under which your current or former spouse or common-law partner is the annuitant, if the transfer is made:
  

  -	under a decree, order, or judgment of a court, or under a written separation agreement; and
  -	to settle rights arising out of your relationship on or after the breakdown of your relationship.

  
  

In addition, you can contribute to your RRIF any amount up to the eligible amount of the designated benefit you receive or are considered to have received from the deceased annuitant's RRIF in the following situations:

• the annuitant under a RRIF dies and, at the time of death, you were the deceased annuitant's spouse or common-law partner; or
• you were a financially dependent child or grandchild of the deceased annuitant who depended on the annuitant because of an impairment in physical or mental functions.

For more information, see Information Sheet RC4178, Death of a RRIF Annuitant, or Form T1090, Death of a RRIF Annuitant - Designated Benefit for year 20__.

Specified pension plan (SPP) payments

If you are a member of an SPP, you can contribute to your RRIF by directly transferring a lump-sum payment from the SPP.

You can also transfer a lump-sum payment from the SPP if you are entitled to it because your current or former spouse or common-law partner was a member of the SPP, and one of the following situations applies:

• your current or former spouse or common-law partner has died; or
• you and your current or former spouse or common-law partner are living separate and apart at the time of the transfer and you are entitled to receive the lump-sum:
  

  -	under a decree, order, or judgment of a court, or under a written separation agreement; and
  -	to settle rights arising out of your relationship on or after the breakdown of your relationship.

For more information on transfers, see Chapter 6 - Transfers to registered plans or funds and annuities.

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Chapter 4 - Anti‑avoidance rules for RRSPs and RRIFs

The existing anti‑avoidance rules applicable to RRSPs and RRIFs have been enhanced to prevent any aggressive tax planning.

The new rules largely adopt the existing tax‑free savings account (TFSA) rules for non‑qualified investments, prohibited investments and advantages, with some modifications.

The new rules impose a tax on non‑qualified investments, prohibited investments and advantages provided in relation to an RRSP or RRIF.

Tax payable on non‑qualified investments

The new rules apply to investments acquired after March 22, 2011. They also apply to pre‑March 23, 2011 investments that first become non‑qualified after March 22, 2011.

Note
An investment that was a non‑qualified investment before March 23, 2011 will continue to be subject to the old rules that provided for either an income inclusion with an offsetting deduction or the 1% monthly tax.

If, in a calendar year, an RRSP or RRIF trust acquires property that was a non‑qualified investment or if previously acquired property becomes non‑qualified, a tax is imposed on the annuitant of an RRSP or a RRIF.

The tax is equal to 50% of the fair market value (FMV) of the property at the time it was acquired or it became non‑qualified.

The tax is refundable in certain circumstances. For more information, see Refund of taxes paid on non‑qualified or prohibited investments.

The annuitant is also liable for the 100% advantage tax on specified non‑qualified investment income if this income is not withdrawn promptly.

Note
Income earned and capital gains realized by an RRSP or RRIF trust on non‑qualified investments will continue to be taxable to the trust, regardless of when the investment was acquired. If an investment is both a non‑qualified investment and a prohibited investment, it is treated as a prohibited investment only and the trust is not subject to tax on the investment earnings.

An annuitant subject to this tax is required to file Form RC339, Individual Return for Certain Taxes for RRSPs or RRIFs for Tax Year 20__. The return must be filed no later than June 30 of the following year. Any tax owing must also be paid by that date.

Reporting requirements by the RRSP or RRIF trust

Financial institutions are required to report information to us and the annuitant when an RRSP or RRIF trust begins or ceases to hold a non‑qualified investment in a year.

Financial institutions must, by no later than the end of February in the year following the year in which the non‑qualified property was acquired or previously acquired property became non‑qualified, provide relevant information to us and the annuitant. This information includes:

• a description of the non‑qualified investment;
• the date that the non‑qualified investment was acquired or disposed of (or became or ceased to be non‑qualified), as applicable, and the fair market value (FMV) of the investment at that date; and
• the RRSP or RRIF contract or account number.

This information is necessary to enable the annuitant to determine the amount of any tax payable or of any possible refund of tax previously paid.

Tax payable on prohibited investments

The 50% tax on prohibited investments applies to investments acquired after March 22, 2011. The 50% tax also applies to pre‑March 23, 2011 investments that first become prohibited after October 4, 2011. The transfer of a pre‑March 23, 2011 prohibited investment between RRSPs or RRIFs of the same annuitant will not be treated as a post‑March 22, 2011 acquisition and thus will not result in the investment being subject to the 50% tax.

If, in a calendar year, an RRSP or RRIF trust acquires property that was a prohibited investment or if previously acquired property becomes prohibited, a tax is imposed on the annuitant of an RRSP or a RRIF.

The tax is equal to 50% of the FMV of the property at the time it was acquired or it became prohibited.

If the prohibited investment ceases to be a prohibited investment while it is held by the trust, the trust is considered to have disposed of and immediately re‑acquired the property at its FMV.

The tax is refundable in certain circumstances. For more information, see Refund of taxes paid on non‑qualified or prohibited investments.

The annuitant is also liable for the 100% advantage tax on income earned and capital gains realized on prohibited investments.

The 100% advantage tax applies to income earned, and the portion of any realized capital gain that accrued, after March 22, 2011, regardless of when the prohibited investment generating the income or gain was acquired. Transitional relief is available for prohibited investments held on March 23, 2011. For more information, see Transitional relief.

Note
If an investment is both a non‑qualified investment and a prohibited investment, it is treated as a prohibited investment only.

An annuitant subject to this tax is required to file Form RC339, Individual Return for Certain Taxes for RRSPs or RRIFs for Tax Year 20__. The return must be filed no later than June 30 of the following year. Any tax owing must also be paid by that date. If you determine that a particular non‑qualified investment held by your RRSP or RRIF trust is also a prohibited investment for the trust, contact your plan issuer/carrier.

Tax payable on an advantage

The 100% tax on advantages generally applies to transactions occurring, income earned and capital gains accruing after March 22, 2011.

If the annuitant or a person not dealing at arm’s length with the annuitant (including the annuitant’s RRSP or RRIF) was provided with an advantage in relation to their RRSP or RRIF during the year, a tax is payable which is:

• in the case of a benefit, the FMV of the benefit;
• in the case of a loan or a debt, the amount of the loan or debt; and
• in the case of an RRSP strip, the amount of the RRSP strip.

The tax is payable by the RRSP or RRIF annuitant, unless the advantage is extended by the financial institution, in which case it is payable by the financial institution.

Transitional relief is available in respect of the advantage tax on prohibited investments held on March 23, 2011. For more information, see Transitional relief.

An annuitant subject to this tax is required to file Form RC339, Individual Return for Certain Taxes for RRSPs or RRIFs for Tax Year 20__. The return must be filed no later than June 30 of the following year. Any tax owing must also be paid by that date.

Swap Transactions

A swap transaction is expressly included in the list of transactions that are treated as an advantage, in effect from July 1, 2011. Swap transactions that are undertaken to remove an investment from an RRSP or RRIF that would otherwise result in tax under Part XI.01 if left in the plan are permitted to continue to occur until the end of 2021.

Note
The Department of Finance has proposed that the transitional period "until the end of 2021", be extended indefinitely.

An exception to the swap rules is provided to allow individuals to "swap‑out" a non‑qualified or prohibited investment that was subject to the new 50% tax. To qualify under this exception, the individual must be entitled to a refund of the tax on disposition of the investment (generally inadvertent cases that are promptly resolved). In addition, we will extend this exception, on an administrative basis, to cover swaps of non‑qualified investments that were subject to the pre‑March 23, 2011 rules, provided that the conditions applicable to a refund are met.

Transitional relief

Transitional relief is available if an annuitant held one or more prohibited investments on March 23, 2011 in their RRSP or RRIF and continues to hold the investments in their RRSP or RRIF in the tax year. The transitional relief provides that any income earned and capital gains accrued and realized after March 22, 2011 on these investments will not be subject to the 100% advantage tax, but instead will be included in the annuitant's regular income.

How to file for transitional relief

To take advantage of the transitional relief, the annuitant must file Form RC341, Election on Transitional Prohibited Investment Benefit for RRSPs or RRIFs. This election must be filed with us no later than June 30 of the following year. The annuitant will be required to withdraw from their RRSP or RRIF within 90 days after the end of the tax year in which the income or gains are earned or realized, an amount equal to their transitional prohibited investment benefit for the year.

Under proposed change, the Department of Finance has advised that it is recommending that the June 30, 2012 deadline to file a Form RC341, Election on Transitional Prohibited Investment Benefit for RRSPs or RRIFs, be extended to March 1, 2013.

An individual's transitional prohibited investment benefit for a tax year is the total of any income earned and capital gains realized in the tax year on these prohibited investments held on March 23, 2011, less any capital losses realized on these investments in the tax year.

• The amount of a capital gain realized is the positive difference between the fair market value of the property when it is disposed of or when it ceases to be a prohibited investment (less reasonable costs of disposition, if any) and the fair market value of the property on March 22, 2011. The amount of a capital loss is the negative difference.
• Income is considered to be earned when it is recognized as income under general tax rules. For example, trust income is considered to be earned at the end of the tax year of the trust. Dividend income is considered to be earned when received (but for purposes of the advantage rules, the gross‑up amount of dividends is to be disregarded).

The amount of the withdrawal will be treated as a regular RRSP or RRIF withdrawal, to be reported by the financial institution on a T4RSP or T4RIF slip, as applicable, for the year of the withdrawal, and included in the annuitant's income on their income tax and benefit return.

Refund of taxes paid on non‑qualified or prohibited investments

If you disposed of a non‑qualified or prohibited investment, reported or previously reported in Parts A and B of Form RC339, Individual Return for Certain Taxes for RRSPs or RRIFs for Tax Year 20__, you may be entitled to a refund of taxes paid if:

• the RRSP or RRIF trust disposes of the property in question before the end of the calendar year following the calendar year in which the tax arose; or
• the property ceases to be a non‑qualified or prohibited investment before the end of the calendar year following the calendar year in which the tax arose.

However, no refund will be issued if it is reasonable to expect that the annuitant knew, or should have known, at the time the property was acquired by the RRSP or RRIF trust, that the property was, or would become, a non‑qualified or prohibited investment.

Note
If you disposed of a non‑qualified or prohibited investment reported in Parts A and B in the same calendar (tax) year that the non‑qualified or prohibited investment was acquired, then remittance of the tax is not required. However, remittance of the tax is required if it is reasonable to expect that the annuitant knew, or should have known, at the time the property was acquired by the RRSP or RRIF trust, that the property was, or would become, a non‑qualified or prohibited investment.

How to claim a refund

To claim a refund, you must:

• send a letter explaining why you are requesting a refund (you can attach the letter to Form RC339); and
• attach the appropriate documents detailing the information relating to the acquisition and disposition of the non‑qualified or prohibited property. The documents must contain:
  • the name and description of the property;
  • the number of shares or units;
  • the date the property was acquired or became non‑qualified or prohibited property; and
  • the date of the disposition or the date that the property became qualified or ceased to be prohibited.

How to request a waiver or a cancellation of taxes

We may waive or cancel all or part of the taxes if we determine it is fair to do so after reviewing all factors, including whether the tax arose because of a reasonable error and whether the tax also gave rise to more than one tax under the Income Tax Act. To consider your request, we need a letter that explains why the tax liability arose, and why it would be fair to cancel or waive all or part of the tax. Send your letter to the following address:

RRSP Return Processing Unit
Ottawa Technology Centre
875 Heron Road
Ottawa ON  K1A 1A2

Chapter 5 - Payments from an RRSP or a RRIF

If you have an RRSP or a RRIF, you probably have a certain amount of flexibility on the types of payments you can get from these plans.

Generally, an RRSP must mature by the last day of the year in which you turn 71. On maturity, the funds must be withdrawn, transferred to a RRIF, or used to purchase an annuity. There are no immediate tax implications when amounts are transferred to a RRIF or used to purchase an annuity. However, if you withdraw funds from your RRSP, tax will be withheld and the amount withdrawn has to be included in your income for the year it is withdrawn.

Note
SPPs do not have the same rules as an RRSP in regards to maturing. Contact the SPP administrator for more information on payments from an SPP.

Sometimes there can be an increase in the fair market value (FMV) of an RRSP or a RRIF between the date of death and the date of final distribution to the beneficiary or estate. Generally, this amount has to be included in the income of the beneficiary or the estate for the year it is received. A T4RSP slip or T4RIF slip may be issued for this amount.

Sometimes, the 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 the FMV of the unmatured RRSP or RRIF at the time of the annuitant's death, a deduction may be claimed on the final return of the annuitant. The deductible amount will generally be calculated as the difference between:

• the FMV at the time of the death that was included in the deceased annuitant's income for the year of death; and
• the total of all the amounts paid from the unmatured RRSP or RRIF.

This applies where the final payment from the unmatured RRSP or the RRIF occurs after 2008. For more information, see charts 6 and 7.

Note
The deduction will generally not be available if the unmatured RRSP or the RRIF held a non-qualified investment after the annuitant died or if the final payment is made after the end of the year that follows the year in which the annuitant died. However, we may waive these conditions to allow the deduction for a deceased annuitant on a case-by-case basis. Form RC249, Post-death decline in the value of an unmatured RRSP or a RRIF - Final distribution made in 20__, must accompany any request by the legal representative for an adjustment to the deceased annuitant’s final tax return.

The following charts contain information on amounts you can receive or that we consider you to receive from your RRSP or RRIF, or from a deceased individual's RRSP or RRIF. This chapter also provides information on spousal or common-law partner RRSPs and RRIFs.

Chart 5 - Amounts from your RRSP or RRIF Report your RRSP income on line 129 of your return and any tax deducted (box 30 of the T4RSP slip) on line 437 of your return. Report your RRIF or SPP income on line 115 of your return if you were 65 or older on December 31, 2012. In all other cases, report your RRIF and SPP (if received before they are 65 years old) income on line 130. For more information, see Line 115 in your income tax and benefit guide. In all cases, claim any tax deducted (box 28 of the T4RIF slip) on line 437 of your return.
Description of amount	Information slip and box number	Will tax be withheld?
Withdrawal from an RRSP - You can withdraw amounts from your RRSP before it starts to pay you a retirement income. If your spouse or common-law partner contributed to your RRSP, see Note 1. You can withdraw unused contributions you made to an RRSP based on an approved Form T3012A, Tax Deduction Waiver on the Refund of Your Unused RRSP Contributions made in ____  . If you transferred the unused contributions to your RRIF, see Note 2.	T4RSP - Box 22   T4RSP - Box 20	Yes     No
Annuity payments from an RRSP - When an RRSP matures, you can draw an annuity from that RRSP. You have to include the payments in your income. If you receive the annuity payments because your spouse or common-law partner died, or if you were 65 or older on December 31, 2012, the payments qualify for the pension income amount. In addition to receiving a retirement income out of your RRSP, you can also choose to transfer the property to a RRIF or to buy yourself an eligible annuity. The value of all the property the plan holds is included in your income unless you draw an annuity from the matured RRSP, use the RRSP to buy yourself an eligible annuity, or transfer the funds to a RRIF. For more information about the pension income amount, see Line 314 in your income tax guide.	T4RSP - Box 16	No
Commutation payments from an RRSP - A commutation payment is a fixed or single lump-sum payment from your RRSP annuity that is equal to the current value of all or part of your future annuity payments from the plan. If your spouse or common-law partner contributed to your RRSP, see Note 1.	T4RSP - Box 22	Yes
Minimum amount from a RRIF - Starting in the year after the year you establish a RRIF, you have to be paid a yearly minimum amount. The payout period under your RRIF is for your entire life. Your carrier calculates the minimum amount based on your age at the beginning of each year. However, you can elect to have the payment based on your spouse or common-law partner's age. You must select this option when filling out the original RRIF application form. Once you make this election, you cannot change it. If you want more information, contact your carrier.	T4RIF - Box 16	No
Excess amount from a RRIF - In any year, you can be paid more than the minimum amount for that year. Amounts paid to you from a RRIF in a year that are more than the minimum amount for that year are called excess amounts. Check with your carrier to make sure that your RRIF allows such payments. Under certain circumstances, you can directly transfer the excess amount from a RRIF. For more information, see Excess amount from a RRIF in chart 9. The excess amount shown in box 24 of your T4RIF slip is for information purposes only. Only include the amount shown in box 16 on your return. If you received the excess amount from your spousal or common-law partner RRIF, see Note 1.	T4RIF - Box 16	Yes
Amounts deemed received on deregistration of an RRSP or a RRIF - If in 2012 your RRSP or RRIF was changed and it no longer satisfies the rules under which it was registered, it is no longer an RRSP or a RRIF. It is now an amended plan or fund. In such a case, we consider you to have received, in 2012, an amount that equals the fair market value of all the property the plan or fund held at the time it ceased being an RRSP or a RRIF. If the deregistration was from your spousal or common-law partner RRSP or RRIF, see Note 1.	T4RSP - Box 26 T4RIF - Box 20	Note 3
Other income and deductions from an RRSP or a RRIF - You may have to include other RRSP or RRIF amounts in your income, or you may be able to deduct other amounts for 2012. This applies if, in 2012, your RRSP or RRIF trust acquires or disposes of a non-qualified investment. It also applies if trust property was used as security for a loan, sold for an amount less than its fair market value, or the trust acquired property for an amount more than its fair market value. If the amount in box 28 of your T4RSP slip or in box 22 of your T4RIF slip appears in brackets (negative amount,) claim it on line 232 of your return.	T4RSP - Box 28 T4RIF - Box 22	No

Chart 6 - Amounts from a deceased annuitant's RRSP
In all cases, tax will not be withheld. Report the amount on line 129 of the return. You can rollover the proceeds of a deceased annuitant’s RRSP or SPP to the RDSP of a financially dependent infirm child or grandchild. For the special transitional rules, go to Registered disability savings plan (RDSP). Note Amounts from an SPP are reported on a T4A slip not a T4RSP slip. Contact the SPP administrator for more information on payments from an SPP.
Description of amount	T4RSP box number	Slip issued in the name of, and to be reported by
Payments from a matured RRSP If the surviving spouse or common-law partner is: the beneficiary of the RRSP, as specified in the RRSP contract, the remaining annuity payments under the RRSP become payable to the annuitant’s surviving spouse or common-law partner and he or she will begin to receive the annuity payments; or	16	Surviving spouse or common-law partner
the beneficiary of the estate, the spouse or common-law partner and legal representative can jointly elect in writing to treat amounts the RRSP paid to the estate as being paid to the spouse or common-law partner. The surviving spouse or common-law partner must attach a copy of the written election to his or her return. The election has to specify that the surviving spouse or common-law partner is electing to become the annuitant of the RRSP. If such an election is made, no T4RSP slip will be issued in the name of the estate even if the estate received the amounts.	16	Surviving spouse or common-law partner
For all other beneficiaries - Annuity payments from an RRSP registered after June 29, 1978, that are to be paid to a beneficiary other than the RRSP annuitant's surviving spouse or common-law partner, have to be commuted. This commutation payment is not taxable in the beneficiary's hands. The fair market value of the property the RRSP held at the time of the annuitant's death is included in the deceased annuitant's income for the year of death. The amount reported on the deceased annuitant's final return may be reduced if, at the time of death, you were a financially dependent child or grandchild of the annuitant, and an amount is paid from the RRSP to you or to the estate of which you are a beneficiary. For more information, see Information Sheet RC4177, Death of an RRSP Annuitant, and Form T2019, Death of an RRSP Annuitant - Refund of Premiums for 20__ .	34	Deceased annuitant
Income earned in the RRSP after the annuitant dies that the beneficiary receives. Income earned in the RRSP after the annuitant dies that the estate receives	28 28	Beneficiary Estate
Payments from an unmatured RRSP Transfer to the surviving spouse or common-law partner (named as beneficiary in the RRSP contract) - If, by the end of the year following the year of death of the annuitant, all of the property the RRSP held is paid to you as the deceased annuitant's spouse or common-law partner (as specified in the RRSP contract), and that payment is directly transferred to your RRSP, claim a deduction equal to the amount transferred to your RRSP on line 208 of your return. If the amount is directly transferred to your RRIF or directly transferred to an issuer to buy yourself an eligible annuity, claim a deduction equal to the amount transferred on line 232 of your return.	18	Surviving spouse or common-law partner
For all other situations - The fair market value of the property the RRSP held at the time of death is included in the deceased annuitant's income for the year of death.	34	Deceased annuitant's final return
The amount reported on the deceased annuitant's final return may be reduced if: You were the spouse or common-law partner of the annuitant at the time of death, and an amount is paid from the unmatured RRSP to you or to the estate of which you are the beneficiary.	18 or 28	Surviving spouse or common-law partner or estate
You were, at the time of death, a financially dependent child or grandchild of the annuitant and an amount is paid from the unmatured RRSP to you or to the estate of which you are a beneficiary. For more information, see Information Sheet RC4177, Death of an RRSP Annuitant, and Form T2019, Death of an RRSP Annuitant - Refund of Premiums for 20__ .	28	Child/grandchild or estate
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, For more information, see Information Sheet RC4177, Death of an RRSP Annuitant, and Form RC249, Post-death decline in the value of an unmatured RRSP or a RRIF - Final distribution made in 20  .	18	Deceased annuitant's final return
Income earned in the RRSP after the annuitant dies that the beneficiary receives.	28	Beneficiary
Income earned in the RRSP after the annuitant dies that the estate receives.	28	Estate

Chart 7 - Amounts from a deceased annuitant's RRIF
In all cases, tax will not be withheld. If you are 65 or older on December 31, 2012, or if you received the payments because your spouse or common-law partner died, report these payments on line 115 of your return. In all other cases, report the payments on line 130 of your return.
Description of amount	T4RIF box number	Slip issued in the name of, and to be reported by
Spouse or common-law partner is designated as the new annuitant - If the RRIF annuitant made a written election in the RRIF contract or in the will to have the RRIF payments continue to the spouse or common-law partner after death, the surviving spouse or common-law partner becomes the annuitant after death and will begin to get the RRIF payments as the new annuitant. The spouse or common-law partner can become the annuitant of the RRIF after the deceased annuitant's death, even if the deceased annuitant did not make this election in the RRIF contract or in the will. This is the case if the legal representative consents to the spouse or common-law partner becoming the annuitant, and if the RRIF carrier agrees to continue the payments under the deceased annuitant's RRIF to the surviving spouse or common-law partner.	16	Surviving spouse or common-law partner
Spouse or common-law partner is designated as beneficiary of the RRIF - If, by the end of the year following the year of death of the annuitant, all of the property the RRIF held is paid to you (as specified in the RRIF contract) as the deceased annuitant's spouse or common-law partner and the eligible amount of that payment is directly transferred to your RRSP, claim a deduction equal to the amount transferred on line 208 of your return. If the amount is directly transferred to your RRIF or directly transferred to an issuer to buy an eligible annuity, claim a deduction equal to the amount transferred on line 232 of your return. The eligible amount of the payment is shown in box 24 of your T4RIF slip, and this is the maximum amount that can be directly transferred.	16 and 24	Surviving spouse or common-law partner
For all other situations - On line 130 of the deceased annuitant's final return, include the fair market value of the property the RRIF held at the time of death. The amount reported on the deceased annuitant's final return may be reduced if one of the following conditions applies:	18	Deceased annuitant's final return
You were the spouse or common-law partner of the annuitant at the time of death and an amount is paid from the RRIF to you or to the estate of which you are a beneficiary. Effective July 1, 2011, you can rollover the proceeds of a deceased annuitant’s RRIF to the RDSP of a financially dependent infirm child or grandchild. For the special transitional rules, go to Registered disability savings plan (RDSP).	16 or 22	Surviving spouse or common-law partner or estate
You were, at the time of death, a financially dependent child or grandchild of the annuitant and an amount is paid from the RRIF to you or to the estate of which you are a beneficiary. For more information, see Information Sheet RC4178, Death of a RRIF Annuitant, and Form T1090, Death of a RRIF Annuitant - Designated Benefit for year 20__ . Effective July 1, 2011, if you were a financially dependent infirm child or grandchild you can rollover the proceeds of a deceased annuitant’s RRIF to your RDSP.	22 22	Child/grandchild or estate Deceased annuitant's final return
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 Information Sheet RC4178, Death of a RRIF Annuitant, and Form RC249, Post-death decline in the value of an unmatured RRSP or a RRIF - Final distribution made in 20     .	n/a	Deceased annuitant's final return
Income earned in the RRIF after the annuitant dies that the beneficiary receives.	22	Beneficiary
Income earned in the RRIF after the annuitant dies that the estate receives.	22	Estate

Transfers to registered disability savings plans

For deaths occurring after March 3, 2010, the existing RRSP rollover rules are extended to allow a rollover of a deceased individual’s RRSP proceeds to the RDSP of the deceased individual’s financially dependent child or grandchild with an impairment in physical or mental functions. These rules also apply for RRIF proceeds, certain lump‑sum amounts paid from RPPs, and certain payments from SPPs.

Note
The amount of RRSP proceeds rolled over to an RDSP cannot exceed the beneficiary's available RDSP contribution room. The rolled over proceeds will reduce the beneficiary's RDSP contribution room, but will not be eligible for any Canada Disability Savings Grants.

Eligible individual - An eligible individual is a child or grandchild of a deceased annuitant under an RRSP or RRIF, or of a deceased member of an RPP or an SPP, who was financially dependent on the deceased for support at the time of the deceased's death by reason of an impairment in physical or mental functions. The eligible individual must also be the beneficiary under the RDSP into which the eligible proceeds will be paid.

For more information on the RDSP and the special transitional rules, go to Registered disability savings plan (RDSP).

The following chart shows what you have to do when there is a rollover to an RDSP. Use form RC4625, Rollover to a registered disability savings plan (RDSP) under paragraph 60(m), or the form provided by your RDSP issuers to document the transaction.

Rollover from:	Deceased individual	Eligible individual (see definition above)
RRSP - Beneficiary named in the contract	n/a	The refund of premiums is shown in box 28 of a T4RSP slip. Enter this amount on line 129 and claim a deduction equal to the amount transferred on line 232. Attach Form RC4625 or a letter from the RDSP issuer to your return.
RRSP - No beneficiary named in the contract	The refund of premiums is shown in box 28 of a T4RSP slip. On the deceased’s final return, enter this amount on line 129 and claim a deduction equal to the amount transferred on line 232. Note The deceased annuitant's legal representative and the qualified beneficiary must have designated the amount the annuitant's estate received from the RRSP to have been received by the qualified beneficiary as a refund of premiums. Form T2019 must be attached to the deceased’s final return.	Enter the refund of premiums transferred to the RDSP on line 130 and claim a deduction equal to the amount transferred on line 232. Attach Form RC4625 or a letter from the RDSP issuer to your return. When there is no beneficiary named in the contract, the dependent child or grandchild will not receive a T4RSP slip. However, Forms T1‑ADJ, RC4625, and T2019 will have to be filed to have the deceased return adjusted to allow an eligible deduction on line 232. When there is no beneficiary named in the contract, the recipient of the annuity will be unknown and so the income is recorded as "Other income" in Box 28.
RRIF - Beneficiary named in the contract	n/a	The designated benefit is shown in box 22 of a T4RIF slip. Enter this amount on line 130 and claim a deduction equal to the amount transferred on line 232. Attach Form RC4625 or a letter from the RDSP issuer to your return.
RRIF - No beneficiary named in the contract	The designated benefit is shown in box 22 of a T4RIF slip. On the deceased’s final return, enter this amount on line 130 and claim a deduction equal to the amount transferred on line 232. Note The deceased annuitant's legal representative and the qualified beneficiary must have designated the amount the annuitant's estate received from the RRIF to have been received by the qualified beneficiary as a designated benefit. Form T1090 must be attached to the deceased’s final return.	Enter the designated benefit transferred to the RDSP on line 130 and claim a deduction equal to the amount transferred on line 232. Attach Form RC4625 or a letter from the RDSP issuer to your return. When there is no beneficiary named in the contract, the dependent child or grandchild will not receive a T4RIF slip. However, Forms T1‑ADJ, RC4625, and T1090 will have to be filed to have the deceased return adjusted to allow an eligible deduction on line 232.
RPP	n/a	The amount is shown in box 018 on T4A slip, Enter this amount on line 130 and claim a deduction equal to the amount transferred on line 232. Attach Form RC4625 or a letter from the RDSP issuer to your return.
Specified pension plan	n/a	The amount is shown in box 018 of a T4A slip. Enter this amount on line 130 and claim a deduction equal to the amount transferred on line 232. Attach Form RC4625 or a letter from the RDSP issuer to your return.

Locked-in RRSP

A locked-in RRSP is a plan containing funds transferred from an RPP for a member of the RPP. Under the pension laws of certain provinces, locked-in RRSPs are sometimes called locked-in retirement accounts (LIRAs). This means that the member cannot receive the transferred funds. They either have to stay in the plan or be transferred to another locked-in RRSP to provide the member with a retirement income.

You cannot withdraw funds from a locked-in RRSP. The money has to stay in the RRSP and will be used to buy a life annuity at retirement age.

Note
You may be able to withdraw funds from a locked-in RRSP under special circumstances. Contact your RRSP issuer.

However, under the pension laws of certain provinces, pension funds or funds from a locked-in RRSP can be transferred to a locked-in RRIF. These locked-in RRIFs are sometimes called life income funds (LIFs) or locked-in retirement income funds (LRIFs).

Your employer or pension plan administrator can answer any questions you have about locked-in funds.

Note
Do not confuse locked-in RRSPs with fixed-term investments in an RRSP. A fixed-term investment, such as a guaranteed investment certificate, can have a locked-in interest rate for the term of the certificate.

LIRAs and locked in RRIFs are taxed in the same manner as regular RRSPs and RRIFs.

Amounts from an SPP account or amounts from a spousal or common-law partner RRSP or RRIF

This section applies to you if you receive income from an SPP account to which your spouse or common-law partner contributed.

This section also applies to you if you receive income from a spousal or common-law partner RRSP or a spousal or common-law partner RRIF. This section may also apply to you if you contributed to your spouse's RRSPs or common-law partner's RRSPs.

A spousal or common-law partner RRSP is any of your RRSPs:

• to which your spouse or common-law partner contributed;
• that received payments or transfers of property from your RRSPs to which your spouse or common-law partner had contributed; or
• that received payments or transfers of property from your RRIFs to which you had transferred amounts from your spousal or common-law partner RRSPs.

A spousal or common-law partner RRIF is any of your RRIFs that received payments or transfers of property from:

• a spousal or common-law partner RRSP; or
• any of your other spousal or common-law partner RRIFs.

Calculating the income you and your spouse or common-law partner have to report

If you contributed to any spousal or common-law partner RRSPs in 2010, 2011 or 2012, or you made a contribution to your spouse’s or common-law partner’s SPP account, you may have to include in your 2012 income all or part of:

• the amounts your spouse or common-law partner received in 2012 from any of his or her unmatured spousal or common-law partner RRSPs;
• the commutation payments your spouse or common-law partner received in 2012 from any of his or her matured spousal or common-law partner RRSPs;
• the amounts we consider your spouse or common-law partner to have received in 2012 from any of his or her deregistered spousal or common-law partner RRSPs; and
• the amounts your spouse or common-law partner received, or those we consider he or she received, in 2012 from any of his or her spousal or common-law partner RRIFs that are more than the minimum amount for the year.

To determine the amount to include in your income or your spouse's or common-law partner's income, your spouse or common-law partner (the annuitant) should complete Form T2205, Amounts from a Spousal or Common-law Partner RRSP or RRIF to Include in Income for     .

Exceptions - The rule that requires you, the contributor, to include certain amounts from spousal or common-law partner RRSPs or spousal or common-law partner RRIFs as income does not apply to the following situations:

• At the time of payment, or when we consider the payment to have been received, you and your spouse or common-law partner were living separate and apart because of the breakdown of your relationship.
• At the time of payment, or when we consider the payment to have been received, you or your spouse or common-law partner were non-residents of Canada.
• The amount is a commutation payment that is transferred directly for your spouse or common-law partner to another RRSP, to a RRIF, or to an issuer to buy an eligible annuity that cannot be commuted for at least three years.
• The contributor dies in the year of payment or the year we consider the payment to have been received.
• We consider the deceased annuitant to have received the amount because of death.

In any such case, the annuitant spouse or common-law partner includes the payment in income for the year he or she receives it or is considered to have received it.

Tax deducted - In all cases, the tax deducted has to be claimed by the individual to whom the slip is issued. In most cases, the information slip issued for the withdrawal will be in the name of the annuitant. However, report the income according to the calculations completed in Parts 1 and 2 of Form T2205, Amounts from a Spousal or Common-law Partner RRSP or RRIF to Include in Income for____.

For more information, see Interpretation Bulletin IT-307, Spousal or Common-Law Partner Registered Retirement Savings Plans.

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Chapter 6 - Transfers to registered plans or funds and annuities

You can transfer certain types of payments to an RPP, an RRSP, a RRIF, an SPP, or a DPSP. You can also use certain payments from an RRSP or a RRIF to buy yourself an eligible annuity.

You have to transfer certain payments directly. For other payments, you can transfer them either directly or indirectly. This chapter provides information about the rules on these transfers.

The three charts in this chapter list the most common types of payments that you can transfer and the types of plans or funds to which you can transfer them. Chart 8 covers payments that you can transfer either directly or indirectly. Chart 9 covers payments that you have to transfer directly. Chart 10 covers payments that you transfer because of the breakdown of your relationship.

Note
If you are a non-resident of Canada, see Form NRTA1, Authorization for Non-Resident Tax Exemption, for more information on transfers.

Registered education savings plan accumulated income payments

Investment earnings in an RESP can be paid out to an individual other than the beneficiary. These payments are called accumulated income payments (AIP) and are included in the individual's income. An additional 20% tax is also applied to these payments.

However, you can reduce the AIP subject to the special 20% tax if you are the original subscriber or the spouse or common-law partner of the deceased original subscriber (if there is no other subscriber) and you meet both of the following conditions:

• You contribute an amount not more than the amount of the AIPs (to a lifetime maximum of $50,000 of AIPs) to your RRSP, or to your spouse's or common-law partner's RRSP, in the year the AIPs are received or in the first 60 days of the following year.
• Your RRSP deduction limit allows you to deduct the amount contributed to your or your spouse's or common-law partner's RRSP on line 208 of your return. You must claim the RRSP deduction for the year in which the AIPs are received.

You cannot reduce the AIPs subject to tax if you became a subscriber because of the death of the original subscriber.

For more information, see Information Sheet RC4092, Registered Education Savings Plans.

Other transfers

Depending on the source of income, the following payments can also be transferred to your RPP, SPP, or RRSP:

• certain lump-sum payments from a non-registered pension plan that relate to services rendered throughout a period while a non-resident of Canada;
• eligible pension income from an estate or a testamentary trust; and
• amounts received from foreign retirement arrangements, such as United States Individual Retirement Accounts (IRAs).

For more information on these types of transfers, see Interpretation Bulletin IT-500, Registered Retirement Savings Plans - Death of an Annuitant, or IT-528, Transfers of Funds Between Registered Plans. For information on how to report the income, see your income tax guide.

For the purposes of this chapter and unless otherwise indicated, an individual’s account under the SPP is considered to be an RRSP after 2009.

Chart 8 - Payments that you can transfer directly or indirectly To deduct a payment, you have to make the contributions to a plan or fund in the year you receive the payment or no later than 60 days after the end of that year. If you transfer the amount to your RRSP, you must be 71 years of age or younger at the end of the year you transfer the funds. You also have to complete Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities and file it with your 2012 return. If you did not receive a Schedule 7 in your income tax package, you can get one at Forms and publications or by calling 1-800-959-2221.
Type of payment	Can be transferred to your:					Instructions
	RPP	RRSP	RRIF	Annuity	SPP*
Retiring allowance	Yes	Yes	No	No	Yes	A retiring allowance is an amount you receive on or after retirement from an office or employment in recognition of long service. It includes payment for unused sick leave and amounts you receive for loss of office or employment, whether as a payment of damages or a payment under an order or judgment of a tribunal. You can transfer only the eligible part of your retiring allowance to your own RPP, SPP or RRSP. The eligible part is $2,000 for each year or part-year of service before 1996 in which you were employed by the employer or a person related to that employer from whom you received the retiring allowance. You can also transfer an additional $1,500 for each year or part-year of service before 1989 in which you had earned no pension or DPSP benefit from employer contributions that were either vested in you at the time of payment or that were previously paid to you. For 2009 and prior years, box 26 of your T4A slip shows the eligible portion of your retiring allowance. Box 27 shows the part of your retiring allowance that is not eligible. For 2012, the eligible portion of your retiring allowance will be reported in box 66 of your T4 slip and box 67 will show the part of your retiring allowance that is not eligible. On a T3 slip, the eligible part of a retiring allowance appears in box 47. Report the retiring allowance shown in boxes 66 and 67 of your 2012 T4 slip, or in box 26 of your T3 slip on line 130 of your return. Similarly, report the retiring allowance shown in boxes 26 and 27 of your T4A slip, or in box 26 of your T3 slip for 2009 and prior years on line 130 of your return for the year in which you received the retiring allowance. Claim a deduction for the amount you transfer to your RPP on line 207 of your return. Claim a deduction for the amount you transfer to your RRSP on line 208 of your return. Write the amount of the transfer on line 11 of Schedule 7. You cannot transfer the eligible part of your retiring allowance to your spouse's RRSP or common-law partner's RRSP. You may be able to contribute amounts you received from your retiring allowance to your own or your spouse's RRSP or common-law partner's RRSP, up to the limits explained in Chapter 2. If you transfer the amount to your RPP, you may have a PA. For more information, contact your plan administrator. Note No tax is withheld if your employer directly transfers the eligible part of your retiring allowance.
Amounts paid from an RRSP or RRIF upon death of the annuitant	No	Yes	Yes	Yes	Yes	If, at the time of death, you are the deceased annuitant's spouse or common-law partner, or you are a financially dependent child or grandchild of the annuitant because of an impairment in physical or mental functions, you can transfer, tax free, certain amounts paid from the annuitant's RRSP or RRIF. You can rollover the proceeds to a RDSP of a financially dependent infirm child or grandchild. For special transitional rules, go to Registered disability savings plan (RDSP). If you are the child or grandchild of the deceased annuitant, and are not financially dependent because of an impairment in physical or mental functions, you can only transfer the amounts to a term annuity. For more information on these transfers, see Information Sheets RC4177, Death of an RRSP Annuitant, and RC4178, Death of a RRIF Annuitant. No tax is withheld at source on these payments. For more information, see Chart 6 - Amounts from a deceased annuitant's RRSP; or Chart 7 - Amounts from a deceased annuitant's RRIF.
Lump-sum paid from an RRP or SPP upon death of the member	No	Yes	Yes	Yes	Yes	If, at the time of death, you are a child or grandchild of the deceased member, and are financially dependent on the member because of an impairment in physical or mental functions, you can transfer, tax free, certain amounts paid from the member’s RPP or, under proposed changes, account under the SPP. You can rollover the proceeds to your RDSP if you are an eligible individual. If you are the child or grandchild of the deceased member, and are not financially dependent on the member because of an impairment in physical or mental functions, you can only transfer the amounts to a term annuity.
* Transfers may be limited by the SPP administrative authority. Verify with your plan administrator for any possible limits.

Chart 9 - Payments that you have to transfer directly
If you receive any of the types of payments listed below (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 tax free. Instead, 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. If you transfer the amount to your RRSP, you must be 71 or younger at the end of the year in which you transfer the funds. You do not have to use the forms listed in this chart. The institution that transfers your payments may use other types of documents to record the transfer. The institution has to provide you with confirmation of the details of the transfer.
Type of payment	Can be transferred to your:					Instructions	Form*
	RPP	RRSP	RRIF	Annuity	SPP*
RPP lump-sum	Yes	Yes	Yes	No	Yes	This includes a lump-sum payment you are entitled to receive from your RPP or from your current or former spouse's RPP or common-law partner's RPP because your current or former spouse or common-law partner has died. Do not claim a deduction for the amount you transfer, and do not report any amount on your return. If you transfer an excess RPP lump-sum payment, see Excess transfer of an RPP lump-sum payment.	T2151
DPSP lump-sum	Yes	Yes	Yes **	No	Yes	This includes a lump-sum payment you are entitled to receive from your DPSP or from your current (or former **) spouse's or common-law partner's DPSP because your current (or former **) spouse or common-law partner has died. You can also transfer this amount to another DPSP. Do not claim a deduction for the amount you transfer, and do not report any amount on your return.	T2151
RRSP commutation payment	No	Yes	Yes	Yes	Yes	The commutation payment is shown in box 22 of your T4RSP slip. Report it on line 129 of your return. If you transfer the amount to your RRSP, claim a deduction for the amount you transfer on line 208 of your return. If you transfer the amount to your RRIF or to an issuer to buy an eligible annuity, claim a deduction for the amount you transfer on line 232. Attach receipts to your return showing the amount transferred.	T2030
Property from an unmatured RRSP	Yes	Yes	Yes	No	Yes	This is a payment you are entitled to receive from an RRSP that has not yet started to pay you retirement income. Do not claim a deduction for the amount you transfer, and do not report any amount on your return.	T2033
Property from a RRIF	Yes	No	Yes	No	No	This is an amount you transfer from one of your RRIFs to another of your RRIFs or to a money purchase provision of an RPP under which you had been a member. Do not claim a deduction for the amount you transfer, and do not report any amount on your return.	T2033
Excess amount from a RRIF	No	Yes	Yes	Yes	No	The excess amount is shown in boxes 16 and 24 of your T4RIF slip unless it is directly transferred to another RRIF for you. Report the total amount shown in box 16 on your return. See Line 115 of your income tax and benefit guide for details on how to report this income. If the excess amount is directly transferred to your RRSP, claim a deduction for the amount you transfer on line 208 of your return. If the excess amount is directly transferred to an issuer to buy an eligible annuity, claim a deduction for the amount you transfer on line 232. The excess amount directly transferred to another of your RRIFs should not be reported on your T4RIF slip. Do not report the amount transferred as income on your return, and do not claim any deduction for the amount transferred.	T2030     T2033
Specified Pension Plan lump-sum	No	Yes	Yes	Yes	n/a	This includes a lump-sum payment you receive from an SPP (such as the Saskatchewan pension plan) as a member. It also includes a lump-sum payment you receive as the current or former spouse or common-law partner of a member if the member has died. Do not claim a deduction for the amount you transfer, and do not report any amount on your return.
* You can find the titles of the forms under Related forms and publications section. ** Under proposed changes.

Chart 10 - Transferring payments received because of a marriage or common-law partnership breakdown
In all cases, the transfer must be direct. If you receive any of the types of payments listed below (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 tax free. Instead, 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. In all cases, you must be entitled to the payment under a decree, order, or judgment of a court, or under a 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. If you transfer the amount to your RRSP, you must be 71 or younger at the end of the year you transfer the funds.
Type of payment	Can be transferred to your:					Instructions	Form*
	RPP	RRSP	RRIF	Annuity	SPP
RPP lump-sum	Yes	Yes	Yes	No	Yes	Do not claim a deduction for the amount you transfer, and do not report any amount on your return.	T2151
DPSP lump-sum	Yes **	Yes **	Yes **	No	Yes	Do not claim a deduction for the amount you transfer, and do not report any amount on your return.	T2151
Property from an unmatured RRSP	No	Yes **	Yes	No	Yes	You and your current or former spouse or common-law partner have to be living separate and apart at the time of the transfer because of the breakdown of your relationship. Do not claim a deduction for the amount you transfer, and do not report any amount on your return.	T2220
Property from a RRIF	No	Yes	Yes	No	Yes	Do not claim a deduction for the amount you transfer, and do not report any amount on your return.	T2220
SPP lump-sum	No	Yes	Yes	Yes	Yes	You and your current or former spouse or common-law partner have to be living separate and apart at the time of the transfer because of the breakdown of your relationship. Do not claim a deduction for the amount you transfer, and do not report any amount on your return.
* You can find the titles of the forms in Related forms and publications section. ** You and the RRSP issuer have to complete Form T2220 for this type of transfer. The RRSP issuer reports the transfer in box 35 of a T4RSP or T4RIF slip issued in your name. Do not report any amount on your tax return.

Direct transfer of an RPP lump-sum payment

In most cases, if you transfer an RPP lump-sum payment directly to another RPP, to an SPP, to an RRSP, or to a RRIF, you do not have to include any part of the payment in your income, and you cannot deduct it. However, the Income Tax Act limits the amount you may transfer tax-free from a defined benefit provision of an RPP to a money purchase provision of an RPP, an RRSP, or a RRIF.

Excess transfer of an RPP lump-sum payment

If the amount you transfer is more than the limit, you have to include the excess transfer in your income. Your T4A slip shows the excess transfer as pension income in box 018, which you report on line 130 of your return.

If you made the excess transfer to your RRSP for 2012, we consider you to have contributed it to the RRSP in the year in which you transferred it. Even if the excess transfer is made to your RRIF, we still consider you to have contributed it to your RRSP. In both cases, the carrier will give you an RRSP receipt for this contribution.

You can deduct these RRSP contributions on line 208 of your return, up to your RRSP deduction limit for the year in which you made the transfer. If you cannot deduct the contributions because they are more than your RRSP deduction limit for the year, you can leave them in your RRSP or your RRIF and deduct them for future years up to your RRSP deduction limit for those years.

Note
You may be subject to the 1%-per-month tax on the part of your unused RRSP contributions that are excess contributions during the period these contributions stay in the RRSP or the RRIF. For more information, see Tax on RRSP excess contributions.

Withdrawal from an RRSP or a RRIF - If you withdraw an excess transfer amount from an RRSP or a RRIF in 2012 and we consider you to have contributed an excess transfer to your RRSP, a deduction is available if you meet both of the following conditions:

• you did not previously deduct the excess amount as an RRSP contribution; and
• you included the excess amount in your income for the year you received it.

You can use Form T1043, Deduction for Excess Registered Pension Plan Transfers You Withdrew from an RRSP or RRIF, to calculate your deduction. Deduct the amount on line 232 of your return.

Note
You cannot use Form T3012A, Tax Deduction Waiver on the Refund of Your Unused RRSP Contributions made in        , to withdraw unused contributions for an excess RPP lump-sum payment transferred to the RRSP or RRIF.

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Chapter 7 - PAs, PARs, and PSPAs

Pension adjustments (PAs)

The following is an overview of PAs under RPPs and DPSPs. If you want to know how your PA is calculated or why you have a PA, contact your employer or plan administrator.

Your PA for a year is the total pension credits for the year under a DPSP or a defined benefit or money purchase provision of an RPP of which you are a member. You may also have a pension credit if you participate in a foreign plan. The pension credit is a measure of the value of the benefits that accrued to you during the year under these arrangements.

Does your employer have to report a PA for you?

Your employer usually has to report a PA for you even if your benefit is not yet vested.

Where is your PA shown on your T4 or T4A slip? 
Your PA appears in box 52 of your T4 slip, or in box 034 of your T4A slip. If you worked for more than one employer in 2012 and each employer sponsors their own RPP or DPSP, you may have more than one PA for 2012. Enter the total of your 2012 PAs from your T4 or T4A slips on line 206 of your 2012 return.

What does your PA affect?

Your PA for a year reduces your RRSP deduction limit for the following year. Your PA does not affect your income. If you contribute to an RRSP, or an SPP, your PA may indirectly affect the income taxes you pay or the refund you receive for the following year, because it reduces your RRSP deduction limit for the following year. For details on how to calculate your RRSP deduction limit, see Calculating your 2012 RRSP deduction limit.

You can find your 2012 RRSP deduction limit on your latest notice of assessment or notice of reassessment. If you receive a certified Form T1004 after we send you your notice, we may reduce your 2012 RRSP deduction limit. In such a case, we will usually send you a T1028, Your RRSP Information for 2012, and give you your revised 2012 RRSP deduction limit when we have updated our records.

You can also find out your RRSP deduction limit by registering for My Account. Once you've registered, you can access your RRSP Deduction Limit Statement online. See My Account.

If you participate in a foreign plan, you may have to report an amount similar to a PA that will reduce your RRSP deduction limit for the following year. To determine the amount you have to report, call the Enquiries for Individuals and Trusts at one of the following numbers: 1-855-284-5942 (toll free within Canada and the Continental U.S.), or 613-940-8495 (from outside Canada and the Continental U.S.—we accept collect calls).

For more information concerning PAs, see Guide T4084, Pension Adjustment Guide.

Pension adjustment reversals (PARs)

A PAR restores your RRSP deduction limit when you end your membership in an RPP or a DPSP in certain circumstances. Your plan administrator or trustee will report a PAR for you if the amount you receive from the plan is less than the total PAs and PSPAs that were previously reported for you. You will only have a PAR under a DPSP or a money purchase provision of an RPP if you are not fully vested at termination.

Your plan administrator or trustee will send you a T10 slip that shows your PAR amount in box 2. Do not report this amount on your return. Your plan administrator or trustee will send us a copy of your T10 slip. We use that copy to increase your RRSP deduction limit for the year.

If you have a PAR for a termination in 2012, it increases your 2012 RRSP deduction limit. In such a case, we will usually send you a T1028, Your RRSP Information for 2012, and give you your revised 2012 RRSP deduction limit when we have updated our records.

For more information on PAR, see Guide RC4137, Pension Adjustment Reversal Guide.

If you do not receive a T1028 and you want to confirm your 2012 RRSP deduction limit, go to My Account or call our Tax Information Phone Service (TIPS) at 1-800-267-6999.

The TIPS RRSP service is available from mid-September to April 30. For RRSP information, you will be asked to provide your social insurance number, your month and year of birth, and the total income you reported on line 150 of your 2011 return.

Past service pension adjustments (PSPAs)

The following is an overview of PSPAs. If you have questions about how your PSPA is calculated or why you have a PSPA, contact your employer or plan administrator.

A PSPA is an amount your RPP administrator calculates when benefits relating to a previous period of pensionable service are improved or when you are credited with a new period of pensionable past service. A PSPA only occurs if the improved benefits or the new past service benefits relate to a period of service after 1989. A PSPA is the sum of the additional pension credits that would have been included in your PA if the upgraded benefits had actually been provided, or the additional service credited in those previous years.

Types of PSPAs

The plan administrator calculates your PSPA and determines whether we have to certify the PSPA before the RPP can provide the past service benefits. There are two types of PSPAs: certifiable PSPAs, and PSPAs that are exempt from certification (exempt PSPAs). In most cases, the plan administrator has to report each PSPA to us, whether exempt or certifiable.

Note
Certifiable PSPAs are also applicable to small plans with fewer than 10 members.

Exempt PSPAs - An exempt PSPA usually occurs when all or almost all plan members receive past service benefit upgrades. In most cases, when an employer provides past service benefits and there is an exempt PSPA that is more than zero, the plan administrator has to report the PSPA to us and to the plan member. For exempt PSPAs, the plan administrator has to complete a T215 slip, Past Service Pension Adjustment (PSPA) Exempt from Certification. Do not attach the T215 slip to your return.

An exempt PSPA will not reduce your RRSP deduction limit until the year following the year of the past service event. For details on how to calculate your RRSP deduction limit, see Calculating your 2012 RRSP deduction limit.

Certifiable PSPAs - A certifiable PSPA usually occurs if you, as a plan member, decide to buy a period of past service that is pensionable service under your RPP.

We have to certify most PSPAs that are more than zero and do not meet the conditions for exemption outlined above. We have to certify the PSPA before you have the right to receive the benefits under the plan. A certified PSPA will reduce your RRSP deduction limit for the year in which it is certified.

Your plan administrator applies for PSPA certification by submitting a completed Form T1004, Applying for the Certification of a Provisional PSPA. Since the Income Tax Act has limits on the PSPA amount for past service benefits that we can certify, we will apply these limits to the information on Form T1004 and determine if we can certify the PSPA.

Cost of past service benefits

The amount it costs you to pay for past service benefits will likely not equal the PSPA associated with the benefits, since a PSPA reflects a general measure of the value of the past service benefits rather than the actual cost to fund the benefits.

Usually, you can pay for the cost of past service benefits by:

• making a lump-sum contribution;
• making instalment contributions; or
• directly transferring amounts from certain other registered plans. In this case, transfers may reduce the PSPA amount your plan administrator has to report to us.

In some cases, your employer may fund all or part of the cost of the past service benefits.

Qualifying transfers - Generally, a qualifying transfer is a direct transfer of a lump-sum amount from an unmatured RRSP, a money purchase provision of an RPP, an SPP, or a DPSP. You can make a qualifying transfer to pay for all or part of the cost of the past service benefits related to the PSPA. If you make a qualifying transfer, the amount you transfer will reduce the PSPA amount the plan administrator has to report. Do not report your qualifying transfer amount as income and do not deduct it.

What happens if we cannot certify your PSPA?

If we cannot certify your PSPA because the PSPA amount is more than the allowable limit, you may still be able to obtain certification if you agree to make a qualifying RRSP withdrawal. We will send you Form T1006, Designating an RRSP Withdrawal as a Qualifying Withdrawal. Complete this form and return it to us within 30 days.

To speed up the certification process, your plan administrator can review the certification formula before sending Form T1004 to us. If your plan administrator knows that we will not certify the PSPA, the administrator may ask you in advance if you want to designate an RRSP qualifying withdrawal. If you choose to do so, the administrator may ask you to complete Form T1006, and will send it to us with the certification request. If you cannot or choose not to make an RRSP qualifying withdrawal, we will not certify the PSPA.

If you choose not to proceed with Form T1006, you have the following options:

• make a qualifying withdrawal, which will have the effect of increasing your RRSP room;
• make a qualifying transfer, which will have the effect of reducing the amount of the PSPA;
• buy the amount of service that the RRSP room plus the additional $8,000 (allowance for a shortfall) could purchase; or
• wait and buy back the service at a later date when you have sufficient RRSP room.

For more information, see Guide T4104, Past Service Pension Adjustment Guide, Chapter 6.4, "PSPAs requiring certification".

Qualifying withdrawal - Generally, a qualifying withdrawal is an amount you withdraw from your RRSP or SPP, and include in your income for the year you withdraw it. You have to meet a number of conditions before we will consider the amount to be a qualifying withdrawal. If you meet these conditions, you can designate the withdrawal and we can certify the PSPA. We outline these conditions in Part 3 of Form T1006, which you use to designate a qualifying withdrawal.

Net PSPA

Your net PSPA for 2012 reduces the amount of RRSP contributions you can deduct for 2012. Your 2012 net PSPA is the total of:

• your exempt PSPAs for 2011 (total from box 2 of your T215 slips);

plus

• your certified PSPAs for 2012 (Form T1004, Part 3, line A);

minus

• your RRSP qualifying withdrawals (Form T1006, Part 3).

Your RRSP deduction limit may be reduced by the net PSPA or similar amount for the year if you participated in a foreign plan or specified retirement arrangement and your past service benefits accruing under the plan were improved.

For more information, see Guide T4104, Past Service Pension Adjustment Guide.

If you do not receive a T1028 and you want to confirm your 2012 RRSP deduction limit, go to My Account or call our Tax Information Phone Service (TIPS) at 1-800-267-6999.

The TIPS RRSP service is available from mid-September to April 30. For RRSP information, you will be asked to provide your social insurance number, your month and year of birth, and the total income you reported on line 150 of your 2011 return.

Related forms and publications

Guides

RC4112	Lifelong Learning Plan (LLP)
RC4135	Home Buyers' Plan (HBP)
RC4137	Pension Adjustment Reversal Guide
T4084	Pension Adjustment Guide
T4104	Past Service Pension Adjustment Guide

Information sheets

RC4092	Registered Education Savings Plans
RC4177	Death of an RRSP Annuitant
RC4178	Death of a RRIF Annuitant

Forms

NRTA1	Authorization for Non-Resident Tax Exemption
RC96	Lifelong Learning Plan (LLP) Request to Withdraw Funds from an RRSP
RC249	Post-death decline in the value of an Unmatured RRSP or a RRIF - Final distribution made in 20__
RC267	Employee Contributions to a United States Retirement Plan for 2012 - Temporary Assignments
RC268	Employee Contributions to a United States Retirement Plan for 2012 - Cross-Border Commuters
RC269	Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2012 - Non-United States Plans or Arrangements
RC339	Individual Return for Certain Taxes for RRSPs or RRIFs for Tax Year 20__
RC341	Election on Transitional Prohibited Investment Benefit for RRSPs or RRIFs
T1-OVP	2012 Individual Tax Return for RRSP Excess Contributions
T1-OVP-S	2012 Simplified Individual Tax Return for RRSP Excess Contributions
T746	Calculating Your Deduction for Refund of Unused RRSP Contributions
T1004	Applying for the Certification of a Provisional PSPA
T1006	Designating an RRSP Withdrawal as a Qualifying Withdrawal
T1007	Connected Person Information Return
T1036	Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP
T1043	Deduction for Excess Registered Pension Plan Transfers You Withdrew from an RRSP or RRIF
T1090	Death of a RRIF Annuitant - Designated Benefit for year 20__
T1171	Tax Withholding Waiver on Accumulated Income Payments from RESPs
T1172	Additional Tax on Accumulated Income Payments from RESPs
T2019	Death of an RRSP Annuitant - Refund of Premiums for 20__
T2030	Direct Transfer Under Subparagraph 60(l)(v)
T2033	Direct Transfer under Subsection 146.3(14.1) or Paragraph 146(16)(a) or 146.3(2)(e) (available on the Internet only)
T2078	Election Under Subsection 147(10.1) in Respect of a Single Payment Received from a Deferred Profit-Sharing Plan
T2151	Direct Transfer of a Single Amount Under Subsection 147(19) or Section 147.3
T2205	Amounts from a Spousal or Common-law Partner RRSP or RRIF to Include in Income for
T2220	Transfer from an RRSP or a RRIF to Another RRSP or RRIF on Breakdown of Marriage or Common-law Partnership
T3012A	Tax Deduction Waiver on the Refund of Your Unused RRSP Contributions Made in

Interpretation bulletins

IT-124	Contributions to Registered Retirement Savings Plans
IT-167	Registered Pension Funds or Plans - Employee's Contributions
IT-221	Determination of an Individual's Residence Status
IT-307	Spousal or Common-Law Partner Registered Retirement Savings Plan
IT-320	Qualified Investments - Trusts Governed by Registered Retirement Savings Plans, Registered Education Savings Plans and Registered Retirement Income Funds
IT-337	Retiring Allowances
IT-412	Foreign Property of Registered Plans
IT-499	Superannuation or Pension Benefits
IT-500	Registered Retirement Savings Plans - Death of an Annuitant

IT-528

Transfers of Funds Between Registered Plans

Information circulars

IC00-1	Voluntary Disclosure Program
IC07-1	Taxpayer Relief Provisions
IC72-22	Registered Retirement Savings Plans
IC77-1	Deferred Profit-Sharing Plans
IC78-18	Registered Retirement Income Funds
IC93-3	Registered Education Savings Plans

For more information

What if you need help?

If you need more information after reading this guide, visit our web site or call 1-800-959-8281.

Forms and publications

To get our forms and publications, go to Forms and Publications, or call 1-800-959-2221.

My Account

My Account is a secure, convenient, and time-saving way to access and manage your tax and benefit information online, seven days a week! If you are not registered with My Account but need information right away, use Quick Access to get fast, easy, and secure access to some of your information.

You can now use your online banking information to login to My Account. You can still use your CRA user ID and password, if you prefer. For more information, go to My Account.

Tax Information Phone Service (TIPS)

For personal and general tax information by telephone, use our automated service, TIPS, by calling 1-800-267-6999.

Notes
You can call TIPS to determine the amount of RRSP contributions you can deduct for 2012.

TIPS RRSP service is available from mid-September to April 30. For RRSP information, you will be asked to provide your social insurance number, your month and year of birth, and the total income you reported on line 150 of your 2011 return.

Teletypewriter (TTY) users

TTY users can call 1-800-665-0354 for bilingual assistance during regular business hours.

Our service complaint process

If you are not satisfied with the service that you have received, contact the CRA employee you have been dealing with or call the telephone number that you have been given. If you are not pleased with the way your concerns are addressed, you can ask to discuss the matter with the employee’s supervisor.

If the matter is not settled, you can then file a service complaint by completing Form RC193, Service-Related Complaint. If you are still not satisfied, you can file a complaint with the Office of the Taxpayers' Ombudsman.

For more information, go to Service complaints or see Booklet RC4420, Information on CRA - Service Complaints.

Your opinion counts

If you have comments or suggestions that could help us improve our publications, send them to :

Taxpayer Services Directorate
Canada Revenue Agency
395 Terminal Avenue
Ottawa ON  K1A 0L5