- If a spouse or common-law partner is the sole beneficiary and the RRSP property moves to a plan for the survivor by December 31 of the year after death, the deceased is not taxed on the RRSP value.
- A survivor can defer tax on a refund of premiums by transferring it to their own plan in the year received or within 60 days after the end of that year.
- Survivors over 71 at the end of the transfer year cannot roll into an RRSP, but can use a RRIF or annuity instead.
When your spouse or common-law partner dies, their RRSP can be one of the largest assets you deal with. It can also be one of the most heavily taxed if nothing is done, which is why the transfer rules matter.
This article explains in plain language how the rollover works for a survivor, the deadlines and the forms involved. Every estate is different, so use it as a map and confirm your own details with a lawyer or accountant.
What happens to an RRSP at death
The default rule is harsh. For an unmatured RRSP, the deceased is considered to have received the RRSP's fair market value at death, and that amount is reported on the final return.
There is an exception for spouses. If the spouse or common-law partner is the sole beneficiary and all the RRSP property is transferred to a plan for that spouse by December 31 of the year after death, the deceased is not taxed on the RRSP value. In that case the survivor reports the amount shown in box 18 of the T4RSP.
Where a qualifying survivor receives a refund of premiums, the legal representative can reduce the amount on the final return using Chart 2. The legal representative is the executor or estate trustee who files the final return.
How the survivor defers the tax
A surviving spouse or common-law partner can defer tax on a refund of premiums by transferring it to their own RRSP, PRPP, SPP, RRIF or eligible annuity. The transfer must be completed in the year the amount is received or within 60 days after the end of that year.
Age matters. To transfer a refund of premiums into an RRSP, the survivor must be 71 or younger at the end of the year of the transfer. An older survivor can use a RRIF or an annuity instead.
Common-law partners are treated the same way as married spouses for these federal tax rules, so being unmarried does not close the door on the rollover.
Deadlines and forms at a glance
| Item | Rule |
|---|---|
| Estate-side deadline for the RRSP property to move to the survivor's plan | December 31 of the year after death |
| Survivor's transfer of a refund of premiums | In the year received or within 60 days after year-end |
| Age limit for an RRSP transfer | 71 or younger at the end of the transfer year |
| Form where the refund of premiums is paid to the estate | T2019 |
| Slip showing the amount for the survivor | T4RSP, box 18 |
These two deadlines are separate. The first deals with the deceased's tax treatment and the second with the survivor's own deferral, so watch both dates.
Where it goes on the survivor's return
The survivor includes the transferred RRSP amounts on line 12900. The matching deduction depends on where the money goes. Transfers to an RRSP are deducted on line 20800 (Schedule 7, line 24640), and transfers to a RRIF or annuity are deducted on line 23200.
Including the amount and then deducting it is how the deferral works. If the deduction is missed, you may be taxed on money you meant to roll over, so an accountant is often worth consulting.
A related option: contributions after death
After a death, the legal representative may contribute to the surviving spouse's RRSP in the year of death or within 60 days after year-end, and deduct that amount on the deceased's final return. This can be a useful planning tool where the deceased had unused room, but whether it suits your situation depends on the facts.
What to do next
- Find out who is named as beneficiary on the RRSP and whether it is you as sole beneficiary.
- Confirm your age at the end of the year you plan to transfer, since 71 is the cut-off for an RRSP.
- Note both dates: December 31 of the year after death, and 60 days after the end of the year you receive the money.
- Ask the financial institution which slips and forms it will issue, such as the T4RSP or T2019.
- Speak with the executor about the final return and whether a Chart 2 reduction applies.
- Keep copies of every transfer record for your tax return.
A lawyer can help with the will and estate side, and an accountant can handle the tax filings. Getting both involved early usually avoids missed deadlines.
Frequently asked questions
Is the RRSP taxed when my spouse dies?
By default, the deceased is considered to have received the RRSP's fair market value at death, reported on the final return. If you are the sole beneficiary and all the property moves to a plan for you by December 31 of the year after death, the deceased is not taxed on that value.
How long do I have to transfer a refund of premiums?
The transfer must be completed in the year you receive the refund or within 60 days after the end of that year. Missing it can leave the amount taxable in your hands.
What if I am older than 71?
To transfer into an RRSP you must be 71 or younger at the end of the year of transfer. Older survivors can use a RRIF or an annuity instead.
Does this apply to common-law partners?
Yes, the federal rules refer to a spouse or common-law partner for the RRSP transfer. Other Ontario rights, such as property division, differ for unmarried partners, so ask a lawyer about those.
Sources
- CRA RC4177 – Death of an RRSP Annuitant or a PRPP Member — canada.ca
- CRA – Amounts paid from an RRSP or RRIF upon the death of an annuitant — canada.ca
- CRA – Contributing to your spouse's or common-law partner's RRSPs — canada.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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