Income Tax Act — I-3.3 204.2
by the individual under a registered retirement savings plan exceeds (ii) the total of all amounts each of which is an amount deducted under subsection 146(5) or 146(5.1) in computing the individual’s income for a preceding taxation year, to the extent that the amount was deducted in respect of premiums paid after that year (other than premiums paid before February 27, 1995), and M is the amount that would be determined by the formula in paragraph 204.2(1.1)(b) in respect of the individual at that time if the values of D and E in that paragraph were nil and section 257 did not apply to that formula. Where terminated plan deemed to continue to exist (2) Notwithstanding paragraph 146(12)(a), for the purposes of this Part, where a registered retirement savings plan ceases to exist and a payment or transfer of funds out of that plan has been made to which subsection 146(16) applied, if an individual’s excess amount for a year in respect of registered retirement savings plans would have been greater had that plan not ceased to exist, for the purpose of computing the excess amount for a year in respect of registered retirement savings plans for so long as the individual or the individual’s spouse or common-law partner is the annuitant under any registered retirement savings plan under which an annuity has not commenced to be paid to the annuitant, the plan that ceased to exist shall be deemed to remain in existence and the individual or the individual’s spouse or common-law partner, as the case may be, shall be deemed to continue to be the annuitant thereunder. When retirement savings plan deemed to be a registered plan (3) Where a retirement savings plan under which an individual or the individual’s spouse or common-law partner is the annuitant (within the meaning assigned by subsection 146(1)) is accepted by the Minister for registration, for the purpose of determining (a) the amount of undeducted RRSP premiums of the individual at any time, and (b) the excess amount for a year in respect of registered retirement savings plans of the individual at any time, the retirement savings plan shall be deemed to have become a registered retirement savings plan on the later of the day on which the plan came into existence and May 25, 1976. Definition of excess amount for a DPSP (4) Excess amount at any time for a trust governed by a deferred profit sharing plan means the total of all amounts each of which is (a) such portion of the total of all contributions made to the trust before that time and after May 25, 1976 by a beneficiary under the plan, other than (i) contributions that have been deducted by the beneficiary under paragraph 60(k) of the Income Tax Act , chapter 148 of the Revised Statutes of Canada, 1952, (ii) amounts transferred to the plan on behalf of the beneficiary in accordance with subsection 147(19), or (iii) the portion of the contributions (other than contributions referred to in subparagraphs 204.2(4)(a)(i) and 204.2(4)(a)(ii)) made by the beneficiary in each calendar year before 1991 not in excess of $5,500, as has not been returned to the beneficiary before that time; or (b) a gift received by the trust before that time and after May 25, 1976. PRPP withdrawals (5) Notwithstanding the Pooled Registered Pension Plans Act or any similar law of a province, a member of a PRPP may withdraw an amount from the member’s account under the PRPP to reduce the amount of tax that would otherwise be payable by the member under this Part, to the extent that the reduction cannot be achieved by withdrawals from plans other than PRPPs. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 204.2; 1994, c. 7, Sch. VIII, s. 117, c. 21, s. 92; 1995, c. 3, s. 49; 1996, c. 21, s. 51; 1998, c. 19, s. 49; 2000, c. 12, s. 142; 2012, c. 31, s. 43; 2017, c. 33, s. 65 2023, c. 26, s. 58 2024, c. 15, s. 54 2024, c. 17, s. 62