New Publication: Death of a RRIF Annuitant

CRA released an updated Publication RC4178 Death of a RRIF Annuitant on October 27. It has been modified to allow the rollover of RRIF proceeds to the RDSP of the financially dependant child or grandchild of the deceased, a change stemming from the March 4, 2010 budget .

These changes will be in effect on July 1, 2011 for deaths occurring after March 3, 2010. Eligible transfers must take place after June 30, 2011. Transitional rules apply for the death of the RRIF annuitant after 2007 and before 2011 that allow similar treatment of the RRIF proceeds. Under these rules the contribution must be made between July 1^st and December 31^st 2011.

These changes also apply to the proceeds of RRSPs and certain lump-sum amounts from Registered Pension Plans. For more information see:

http://www.cra-arc.gc.ca/E/pub/tg/rc4460/README.html