TaxTips.ca
Canadian Tax and
Financial Information
Taxes on RRSPs and RRIFs at Death

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!      Internet Explorer - Use compatibility view for calculators to work properly!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources


RRSPs RRIFs and TFSAs -> Taxes on RRSPs and RRIFs at death
Wills and Estates

How are RRSPs and RRIFs taxed at death?

The general rule for an RRSP or RRIF is that the value of the RRSP or RRIF at the date of death is included in the income of the deceased for the tax return for the year of death.  However, income tax may be deferred if the beneficiary of the RRSP, RRIF, or estate is:

  1. the spouse or common-law partner

  2. a financially dependent child or grandchild under 18 years of age, or

  3. financially dependent mentally or physically infirm child or grandchild of any age.

In order for the tax to be deferred, the RRSP or RRIF must be transferred to the RRSP, RRIF, or eligible annuity of the beneficiary before December 31st of the year following the year of death.  Other conditions also apply.

The Federal 2010 Budget made a change to also allow a rollover of a deceased individual's RRSP proceeds to the Registered Disability Savings Plan (RDSP) of a financial dependent infirm child or grandchild.  This was effective for deaths occurring on or after March 4, 2010.

 

References:

bulletRC4177 Death of an RRSP annuitant
bulletRC4178 Death of a RRIF annuitant
bullet T4040 RRSP and other Registered Plans for Retirement

Tax Tip:  Make sure your RRSP or RRIF named beneficiary is up to date.

 

Revised: February 12, 2015

 

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.