Income Tax Act

Marginal note:Definitions

• 60.02 (1) The definitions in this subsection apply in this section and section 146.4,

  eligible individual

  eligible individual means a child or grandchild of a deceased annuitant under a registered retirement savings plan or a registered retirement income fund, or of a deceased member of a pooled registered pension plan, a registered pension plan or a specified pension plan, who was financially dependent on the deceased for support, at the time of the deceased’s death, by reason of mental or physical infirmity. (particulier admissible)

  eligible proceeds

  eligible proceeds means an amount (other than an amount that was deducted under paragraph 60(l) in computing the eligible individual’s income) received by an eligible individual as a consequence of the death after March 3, 2010 of a parent or grandparent of the eligible individual that is

  • (a) a refund of premiums (as defined in subsection 146(1));

  • (b) an eligible amount under subsection 146.3(6.11); or

  • (c) a payment (other than a payment that is part of a series of periodic payments or that relates to an actuarial surplus) out of or under a pooled registered pension plan, a registered pension plan or a specified pension plan. (produit admissible)

  specified RDSP payment

  specified RDSP payment in respect of an eligible individual means a payment that

  • (a) is made to a registered disability savings plan under which the eligible individual is the beneficiary;

  • (b) complies with the conditions set out in paragraphs 146.4(4)(f) to (h);

  • (c) is made after June 2011;

  • (d) has been designated in prescribed form for a taxation year by the holder of the plan and the eligible individual at the time that the payment is made; and

  • (e) if the eligible individual is not a DTC-eligible individual (as defined in subsection 146.4(1)), is made not later than the end of the fourth taxation year following the first taxation year throughout which the beneficiary is not a DTC-eligible individual. (paiement de REEI déterminé)

  transitional eligible proceeds

  transitional eligible proceeds of a taxpayer means

  • (a) any amount (other than an amount that is eligible proceeds or an amount that was deducted under paragraph 60(l) in computing the taxpayer’s income) that is received by the taxpayer as a consequence of the death of an individual after 2007 and before 2011 out of or under

    • (i) a registered retirement savings plan or registered retirement income fund, or

    • (ii) a registered pension plan (other than an amount that is received as part of a series of periodic payments or that relates to an actuarial surplus); or

  • (b) an amount withdrawn from the taxpayer’s registered retirement savings plan or a registered retirement income fund (in this subsection referred to as the “RRSP withdrawal”) if

    • (i) the taxpayer previously deducted an amount under paragraph 60(l) in respect of an amount that would be described by paragraph (a) if it were read without reference to “other than an amount that is eligible proceeds or an amount that was deducted under paragraph 60(l) in computing the taxpayer’s income”,

    • (ii) the RRSP withdrawal is included in computing the taxpayer’s income for the year of the withdrawal, and

    • (iii) the RRSP withdrawal does not exceed the amount deducted under subparagraph (i). (produit admissible transitoire)

• Marginal note:Rollover to RDSP on death

  (2) There may be deducted in computing the income for a taxation year of a taxpayer who is an eligible individual an amount that

  • (a) does not exceed the lesser of

    • (i) the total specified RDSP payments made in the year or within 60 days after the end of the year (or within any longer period after the end of the year that is acceptable to the Minister) in respect of the taxpayer; and

    • (ii) the total amount of eligible proceeds that is included in computing the taxpayer’s income in the year; and

  • (b) was not deducted in computing the taxpayer’s income for a preceding taxation year.

• Marginal note:Application of subsections (4) and (5)

  (3) Subsections (4) and (5) do not apply unless

  • (a) a taxpayer who was the annuitant under a registered retirement savings plan or a registered retirement income fund or was a member of a registered pension plan died after 2007 and before 2011;

  • (b) the taxpayer was, immediately before the taxpayer’s death, the parent or grandparent of an eligible individual;

  • (c) transitional eligible proceeds were received from the plan or fund by

    • (i) an eligible individual in respect of the taxpayer,

    • (ii) a person who was the spouse or common-law partner of the taxpayer immediately before the taxpayer’s death, or

    • (iii) a person who is a beneficiary of the taxpayer’s estate or who directly received transitional eligible proceeds as a consequence of the death of the taxpayer; and

  • (d) the transitional eligible proceeds were included in computing the income of a person for a taxation year.

• Marginal note:Transitional rule

  (4) There may be deducted in computing the income of a taxpayer described in paragraph (3)(c) for a taxation year an amount approved by the Minister that does not exceed the lesser of

  • (a) the total specified RDSP payments made by the taxpayer before 2012, and

  • (b) the amount of transitional eligible proceeds included in computing the taxpayer’s income for the year.

• Marginal note:Transitional rule — deceased taxpayer

  (5) There may be deducted in computing the income of a taxpayer for the taxation year in which the taxpayer died an amount approved by the Minister that does not exceed the lesser of

  • (a) the total specified RDSP payments made before 2012 by an individual described in subparagraph (3)(c)(iii), and

  • (b) the amount by which the total of all amounts that were included in computing the taxpayer’s income for the year under subsection 146(8.8) or 146.3(6) exceeds the total of all amounts, if any, that were deducted in computing the taxpayer’s income for the year under subsection 146(8.92) or 146.3(6.3).

• Marginal note:Limitation

  (6) The total amounts that may be deducted under subsections (4) and (5) in respect of transitional eligible proceeds received in respect of the death of a taxpayer shall not exceed the total transitional eligible proceeds received in respect of the deceased taxpayer.