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

You can contribute to your RRIF any amounts you receive or are considered to have received from a deceased annuitant's RRSP if:

• 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 a physical or mental infirmity. If this is the case, you may be able to transfer the amount even if the deceased annuitant had a spouse or common-law partner at the time of death.

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

Note
If you were financially dependent, but not because of a mental or physical impairment, the funds can only be transferred to a term annuity.

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

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

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

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

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__.

Completing your tax return

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

Funds received from an RRSP

• If these funds were transferred to an RRSP, complete Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities. Report the amount on line 240 and submit Schedule 7 with your return. Include the income on line 129 and claim the deduction on line 208 of your return.
• If these funds were transferred to a RRIF or an annuity, include the income on line 129 and claim the deduction on line 232 of your return.

Funds received from a RRIF

If these funds were received due to the death of a spouse or common-law partner, or if you were 65 or older on December 31 of the tax year in which you received the funds, report these funds on line 115 of your return.

• If these funds are transferred to your RRSP, complete and submit a Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities, and deduct the amount on line 208 of your return.
• If the funds are transferred to a RRIF or to an annuity, deduct the amount on line 232 of your return.

If these funds were not received due to the death of a spouse or common-law partner, or if you were not 65 or older on December 31 of the tax year in which you received the funds, report these funds on line 130 of your return.

• If these funds are transferred to your RRSP, complete and submit a Schedule 7, RRSP Unused Contributions, Transfers, and HBP or LLP Activities, and deduct the amount on line 208 of your return.
  
  
• If the funds are transferred to a RRIF or to an annuity, deduct the amount on line 232 of your return.

Forms and publications

• Guide T4040, RRSPs and Other Registered Plans for Retirement
• Information Sheet RC4177, Death of an RRSP Annuitant
• Information Sheet RC4178, Death of an RRIF Annuitant
• Form T1090, Death of a RRIF Annuitant - Designated Benefit for year 20__
• Form T2019, Death of an RRSP Annuitant - Refund of Premiums for 20__