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

You can contribute to your RRIF any amounts that do not exceed the eligible part of the designated amount you receive or are considered to have received from a deceased annuitant's or member's RRSP, PRPP or SPP in the following situations:

• The annuitant or member under an RRSP, a PRPP or SPP dies and, at the time of death, you were the deceased annuitant's or member's spouse or common-law partner,
• You were a financially dependent child or grandchild of the deceased annuitant or member who depended on the annuitant or member because of an impairment in physical or mental functions. If this is the case, you may be able to transfer the amount even if the deceased annuitant or member had a spouse or common-law partner at the time of death.

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

If, at the time of the annuitant's death, you are the spouse or common-law partner, or the child or grandchild who is financially dependent on the annuitant because of an impairment in physical or mental functions, you can transfer certain amounts from the annuitant's RRSP or RRIF, on a tax-deferred basis.  

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

If you are the child or grandchild of the deceased annuitant, and you are not financially dependent because of an impairment in physical or mental functions, you can only transfer the amounts to a term annuity.

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.

Sometimes, the fair market value (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 FMV of the RRSP or RRIF at the time of the annuitant's death, a deduction may be claimed on the final tax return of the annuitant. For more information, see Death of an RRSP annuitant or Death of a RRIF annuitant.

Filling out your Income Tax and Benefit Return

The issuer who receives the transferred funds will issue a receipt to the qualified beneficiary. The beneficiary can use the receipt to claim a deduction on their income tax and benefit return for the year the refund of premiums was received.

Funds received from an RRSP

• If these funds were transferred to an RRSP, fill out Schedule 7, RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities. Report the amount on line 24640 and submit Schedule 7 with your tax return. Include the income on line 12900 and claim the deduction on line 20800 of your return.
• If these funds were transferred to a RRIF or an annuity, include the income on line 12900 and claim the deduction on line 23200 of your return.

If 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, see Death of an RRSP annuitant.

Funds received from a RRIF

If you received these funds due to the death of your 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 11500 of your return.

• If these funds are transferred to your RRSP, fill out and submit a Schedule 7, RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities, and deduct the amount on line 20800 of your return.
• If the funds are transferred to a RRIF or to an annuity, deduct the amount on line 23200 of your tax return.

If you received these funds for a reason other than 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 13000 of your tax return.

• If these funds are transferred to your RRSP, fill out and submit a Schedule 7, RRSP, PRPP and SPP Contributions and Transfers and HBP and LLP Activities, and deduct the amount on line 20800 of your return.
• If the funds are transferred to a RRIF or to an annuity, deduct the amount on line 23200 of your return.

If 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 Death of a RRIF annuitant.

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 a RRIF Annuitant, PRPP Member, or ALDA Annuitant
• Form T1090, Joint Designation on the Death of a RRIF Annuitant, PRPP Member, or ALDA Annuitant
• Form T2019, Death of an RRSP Annuitant – Refund of Premiums