It is possible to transfer lump sums directly from existing RRSPs, DPSPs and company pension plans into an RRSP, e.g.

  • On termination of employment
  • On death of a plan member
  • When an RRSP or DPSP program is terminated
  • Following marriage breakdown, pursuant to a Court Order or separation agreement
  • As a result of retroactive amendments to a company pension plan that reduces employee contributions
  • In respect of employer contributions to a DPSP at any time

The tax-free transfer may only be indirect pursuant to the annuitant’s death and the plan is transferred to the surviving spouse’s sheltered plan.

Some transfers may need to go into a locked-in plan.

A less common transfer opportunity can prove very useful in certain circumstances.

A RRIF or commuted annuity can be transferred back, in whole or in part, to an RRSP, provided the annuitant is young enough (i.e. underage 70).

Planning Considerations

    • Imagine that you converted to a RRIF during your 60s, perhaps because you needed the pension income cash flow. Now imagine that your circumstances have changed and you no longer need that income. Also, you are in a high tax bracket and would rather keep that money tax-sheltered. The RRIF transfer provision back to your RRSP will allow you to undo what was created before.