What's new for RRSPs and related plans

Saskatchewan Pension Plan (SPP) contributions

Under proposed changes, SPP contributions will generally be subject to the same rules as RRSP contributions. An individual's account under the SPP will be treated as an RRSP for specified purposes, and the income attribution rules that apply to a spousal or common-law partner RRSP will apply to accounts under the SPP. In addition, lump-sum death benefits paid from an account under the SPP will be treated similarly to rollovers of death benefits paid from an RPP. The proposed changes generally apply after 2009.

Anti-avoidance rules

Under proposed changes, anti-avoidance rules will be strengthened to prevent aggressive tax planning strategies, including those that claim to allow RRSP annuitants to access their RRSP and RRIF funds without including these amounts in income.

The proposed changes include the modification of existing RRSP and RRIF advantage rules and the tax rules that apply when an RRSP or RRIF acquires a non-qualified investment, and the introduction of a special tax on the annuitant of an RRSP or RRIF that acquires a prohibited investment.

For more information, see Questions and answers - 2011 Budget changes relating to financial institutions' reporting and remittance requirements as RRSP issuers / RRIF carriers.

Deduction for pension repayments

Under proposed changes, an individual can claim deduction if he or she repays to a registered pension plan (RPP) an overpayment of an amount received from the RPP in error that was included in his or her income for the year or a preceding year.

Forms and publications

• Guide T4040, RRSPs and Other Registered Plans for Retirement