Transfer of pension income

If you’re entitled to a lump-sum payment out of a registered pension plan (RPP) or a deferred profit sharing plan (DPSP), that amount may be contributed to another RPP, DPSP or RRSP. However, the lump-sum payment must be made directly from one plan to another, and then only if certain conditions are met.

If you want to transfer a lump-sum payment from a foreign plan to your RRSP you should get professional tax advice. For example, the tax implications of transferring amounts from a US individual retirement account (IRA) to a Canadian RRSP are complex. Your adviser can explore all the options and potential tax obligations of such transfers.