RRSP transfer to spouse on breakdown of Marriage

Tax Topics
1

For a transfer of this type I have 2 questions:
1 - is there a limit to the amount that can be transferred directly
2 - Is there any replenishment to the RRSP contribution room for the transferor?
Many thanks,
Bea

2

There is no income triggered as long as this is done as part of the settlement of the marital assets. It also doesn’t affect the RRSP limit for either spouse.

3

Hi Beagon,

  1. the transfer is in relation to the settlement of entitlements and has no bering on either of the party’s RRSP deduction limit. It is a direct transfer with no income inclusion or deduction, see Chart 10 of the T4040 RRSP guide https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4040/rrsps-other-registered-plans-retirement.html
  2. No, there is no replenishment of the transferor’s RRSP room or funds.

Hope this helps

Regards,
Allen