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RRSPs and OtherRegistered Plansfor Retirement

2007

T4040(E) Rev. 07

www.cra.gc.ca

Is this guide for you?

Use this guide if you want information about registeredpension plans (RPPs), registered retirement savings plans(RRSPs), registered retirement income funds (RRIFs), orregistered education savings plan (RESP) accumulatedincome payments (AIP). This guide has information thatyou may need to complete your return, which is not in yourincome tax package.The first three chapters provide information about plans orfunds to which you can contribute. Chapter 1 hasinformation about making contributions to an RPP.Chapter 2 has information about RRSPs, including whatyour options are if you cannot deduct all the amounts youcontribute to an RRSP, and when to complete a T1-OVP,

2007 Individual Tax Return for RRSP Excess Contributions

.Chapter 3 gives a description of the types of amounts youcan contribute to a RRIF.To determine the amounts you can receive from an RRSP ora RRIF, and to find out how to report those amounts, seeChapter 4. If you want to transfer an amount from one ofyour plans to another, see Chapter 5 for your options.Chapter 6 provides general information on the pensionadjustment (PA), pension adjustment reversal (PAR), andpast service pension adjustment (PSPA). We use these threeamounts to determine how much you can contribute toan RRSP.

Glossary

– We have included definitions of some of theterms used in this guide in a glossary on page 4. You maywant to read this before you start.

Forms and publications

Throughout the guide, we refer to other forms andpublications. You can get these documents on our Web siteat

www.cra.gc.ca/forms

, or by calling us at

1-800-959-2221

Internet access

My Account

– My Account is an online service that givesyou the convenience and flexibility of viewing andmanaging your personalized information includingregistered retirement savings plan (RRSP), HomeBuyers’ Plan (HBP), and Lifelong Learning Plan (LLP)information. Visit our secure Web site at

www.cra.gc.ca/myaccount.

Tax Information Phone Service (T.I.P.S.)

T.I.P.S. is an automated phone service that provides youwith general and personal tax information. You can callT.I.P.S. to find out the amount of RRSP contributions youcan deduct for 2007.The T.I.P.S. RRSP service is available from mid-Septemberto April 30. For RRSP information, you will be asked toprovide your social insurance number, your month andyear of birth, and the total income you reported on line 150of your 2006 return. The T.I.P.S. telephone numberis

1-800-267-6999

Contacting us

In this publication, we use plain language to explain themost common tax situations. If you need more informationafter reading the guide, visit our Web site at

www.cra.gc.ca

or contact us at

1-800-959-8281

Teletypewriter (TTY) users

– If you use a TTY, you can callour bilingual enquiry service at

1-800-665-0354

.Beginning in 2007, a registered retirement savings plan (RRSP) must mature by the end of the year in which the annuitantturns 71 years of age. Similarly, registered pension plans (RPPs) and deferred profit sharing plans (DPSPs) will generally berequired to commence the payment of benefits to members by the end of the year in which the members turn 71 years of age(previously 69 years of age). For more information, see pages 10, 18, and 23.La version française de ce guide est intitulée

REER et autres régimes enregistrés pour la retraite

Before you startWhat’s new

www.cra.gc.ca3

Page PageGlossary

................................................................................ 4

Chapter 1 – RPP contributions

......................................... 5

Current service and past service contributionsfor 1990 or later years...................................................... 5Past service contributions for 1989 or earlier years......... 5Interest on past service contributions............................... 6Excess contributions for current service madefrom 1976 to 1985............................................................. 6Other deductions................................................................. 6Chart 1 – Buying Back Service or Upgrading PastService Benefits for 1989 or Earlier Years – How doYou Determine if Your RPP Past ServiceContribution is for Service While You Were aContributor or for ServiceWhile You Were not a Contributor?.............................. 7Chart 2 – Calculating Your 2007 Deduction for YourRPP Contributions........................................................... 8

Chapter 2 – RRSP contributions

...................................... 9

How do you claim your RRSP deduction?....................... 10Age limit for contributing to an RRSP.............................. 10Contributing to your RRSPs............................................... 10How much can you deduct?........................................... 10Calculating your 2007 RRSP deduction limit............... 10Contributions you can deduct for 2007......................... 10Contributing to your spouse’s RRSP or common-lawpartner’s RRSP.................................................................. 11Keeping track of your RRSP contributions – Schedule 7.... 11Chart 3 – 2007 RRSP Deduction Limit.............................. 12Unused RRSP contributions............................................... 14Withdrawing the unused contributions........................ 14Tax on RRSP excess contributions................................. 14Chart 4 – Do You Have to Complete a 2007 T1-OVPReturn?.......................................................................... 16

Chapter 3 – RRIF contributions

....................................... 16

Property from an RRSP....................................................... 16RPP payments...................................................................... 17DPSP payments.................................................................... 17Property from another RRIF.............................................. 17Saskatchewan Pension Plan (SPP) payments................... 18

Chapter 4 – Payments from an RRSP or a RRIF

........... 18

Chart 5 – Amounts From Your RRSP or RRIF.................... 19Chart 6 – Amounts From a Deceased Annuitant’s RRSP... 20Chart 7 – Amounts From a Deceased Annuitant’s RRIF.... 21Locked-in RRSP................................................................... 21Amounts from a spousal or common-law partnerRRSP or RRIF................................................................... 22Calculating the income you and your spouse orcommon-law partner have to report......................... 22

Chapter 5 – Transfers to registered plans or fundsand annuities

....................................................... 23Transfers from a registered retirement income fund(RRIF) to a registered pension plan (RPP)................... 23

Registered education savings plan (RESP)accumulated income payments..................................... 23Other transfers..................................................................... 23Chart 8 – Payments That You Can Transfer Directlyor Indirectly...................................................................... 24Chart 9 – Payments That You Have to TransferDirectly............................................................................. 25Chart 10 – Payments That You Transfer DirectlyBecause of the Breakdown of Your Relationship........ 26Direct transfer of an excess RPP lump-sum payment.... 26

Chapter 6 – PAs, PARs, and PSPAs

................................. 27

Pension adjustments (PAs)................................................ 27Does your employer have to reporta PA for you?................................................................... 27What does your PA affect?............................................. 27Pension adjustment reversals (PARs)............................... 27Past service pension adjustments (PSPAs)...................... 27Types of PSPAs................................................................ 27Cost of past service benefits........................................... 28What happens if we cannot certify your PSPA?.......... 28Net PSPA.......................................................................... 28

References

........................................................................... 29

If you have a visual impairment, you can get our publicationsand your personalized correspondence in braille, large print, oretext (CD or diskette), or on audio cassette or MP3. For details,visit our Web site at

www.cra.gc.ca/alternate

, orcall

1-800-959-2221

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