- If a spouse or common-law partner is named successor annuitant, no deemed receipt applies on death and the RRIF continues.
- A spouse who is only a beneficiary can still defer tax by rolling over a refund of premiums to a registered plan.
- A rollover to an RRSP is subject to an age limit measured at the end of the year of the transfer, so an older survivor uses a RRIF or annuity instead.
After a spouse dies, the RRIF they held may be the main source of retirement income you now rely on. A common question is whether you can simply take it over, keep the payments going and avoid a large tax bill.
The answer depends on how the plan names you. Being a successor annuitant is different from being a beneficiary, and each leads to a different tax result. This article compares the options in plain terms.
This article covers Canadian federal tax law, which applies in every province.
What happens to a RRIF at death
As a general rule, the annuitant of a RRIF is deemed to have received, immediately before death, the fair market value of all the RRIF property, and this is reported on the final return. The Income Tax Act sets this out for the last annuitant of a RRIF in s. 146.3(6).
That rule would be costly for a large plan, which is why the exceptions for a surviving spouse or common-law partner matter.
Option 1: successor annuitant
If a spouse or common-law partner is named successor annuitant in the RRIF, no deemed receipt applies on death. The RRIF continues, the spouse becomes the annuitant, and they are taxed only on the payments they later receive.
A spouse who was not named can still qualify if the legal representative consents and the carrier agrees. Whether the carrier will agree is a practical question to raise early with the plan issuer.
A spouse's post-death income from a RRIF is reported in box 16 of a T4RIF. This is the closest thing to treating the RRIF as your own, since the plan keeps its character and you are taxed as the payments come out.
Option 2: beneficiary who rolls over
A RRIF beneficiary, as opposed to a successor annuitant, receives a lump sum from the estate or plan. The tax is on the deceased's final return, and the beneficiary can only defer it if they are a qualifying survivor who rolls over the refund of premiums.
A qualifying survivor includes the deceased's spouse or common-law partner. A survivor who receives a refund of premiums includes it in income but can deduct it by transferring it to their own RRSP or to a RRIF, RDSP or annuity.
The transfer must be completed in the year received or within 60 days after the end of that year. A transfer to an RRSP is subject to an age limit measured at the end of the year the transfer is made, and a survivor past that limit transfers to a RRIF or annuity instead. The exact cut-off age for your year is worth confirming with the CRA or an accountant before you transfer.
If the money is paid to the estate, a joint designation on Form T1090 lets a qualifying survivor be taxed on the RRIF amounts instead of the final return.
Comparing the two routes
| Point | Successor annuitant | Beneficiary with rollover |
|---|---|---|
| Deemed receipt at death | Does not apply | Tax is on the final return, and can be deferred only if a qualifying survivor rolls over the refund of premiums |
| What you hold | The same RRIF, now yours | A transfer into your RRSP, RRIF, RDSP or annuity |
| Time limit | Depends on the plan and carrier | Year received or 60 days after year end |
| Age limit | None stated | RRSP only within the age limit at year end; otherwise RRIF or annuity |
Which route is available depends on the plan documents and the will, so read both before choosing.
A word on RRSPs that have turned into annuities
If the deceased held a matured RRSP (an annuity), a surviving spouse or common-law partner entitled to receive amounts becomes the successor annuitant and reports payments from box 16 of the T4RSP. If the spouse is named alongside other beneficiaries, they become successor annuitant only for their share.
What to do next
- Find the RRIF contract and check whether you are named successor annuitant.
- Ask the issuer whether it will accept you if you were not named and the legal representative consents.
- If you are a beneficiary, diarize the rollover deadline.
- Check your age against the RRSP age limit before choosing a transfer, and confirm the cut-off with the CRA or an accountant.
- Have a lawyer or accountant review the choice, especially for large plans.
Frequently asked questions
Is a successor annuitant taxed on the RRIF at death?
No deemed receipt applies when a spouse or common-law partner is named successor annuitant. The RRIF continues and the spouse is taxed only on the payments they later receive.
What if my spouse did not name me successor annuitant?
You can still qualify if the legal representative consents and the carrier agrees. Otherwise you may be a beneficiary who can roll over a refund of premiums.
Can I roll a RRIF into my own RRSP?
A qualifying survivor can transfer a refund of premiums to their own RRSP if they are within the RRSP age limit at the end of the year of the transfer. Older survivors use a RRIF or annuity instead. Confirm the exact cut-off age with the CRA or an accountant.
How long do I have to complete a rollover?
The transfer must be completed in the year it is received or within 60 days after the end of that year.
Sources
- CRA – RC4177, Death of an RRSP Annuitant — canada.ca
- CRA – Amounts paid from an RRSP or RRIF upon the death of an annuitant — canada.ca
- CRA – RC4178, Death of a RRIF Annuitant — canada.ca
- Income Tax Act, s. 146.3(6) — Justice Laws (federal)
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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