Form T2151 Direct Transfer of a Single Amount Under Subsection 147(19) or Section 147.3 - Canada

Form T2151 is used in Canada for the direct transfer of a single amount from a registered retirement savings plan (RRSP) or a registered pension plan (RPP) to another RRSP or RPP. It is under subsection 147(19) or section 147.3 of the Canadian Income Tax Act. This form ensures that the transfer of funds is done within the tax rules and helps individuals avoid tax liabilities.

The individual who wishes to make a direct transfer of a single amount under subsection 147(19) or section 147.3 in Canada is responsible for filing the Form T2151.

FAQ

Q: What is Form T2151?
A: Form T2151 is a form used in Canada for the direct transfer of a single amount under subsection 147(19) or section 147.3.

Q: Who uses Form T2151?
A: Form T2151 is used by individuals in Canada who want to transfer a single amount from one registered pension plan or deferred profit sharing plan to another, without triggering tax consequences.

Q: What is the purpose of Form T2151?
A: The purpose of Form T2151 is to provide the necessary information to the Canada Revenue Agency (CRA) to authorize the direct transfer of a single amount from one registered plan to another.

Q: What is a registered pension plan?
A: A registered pension plan is a retirement savings plan set up by an employer or employee group, which meets certain criteria set by the CRA and qualifies for tax advantages.

Q: What is a deferred profit sharing plan?
A: A deferred profit sharing plan is a retirement savings plan where the employer contributes a portion of the company's profits to the plan, and the employee receives the funds upon retirement or termination.

Q: What are the tax consequences of a direct transfer?
A: A direct transfer of a single amount under subsection 147(19) or section 147.3 is not considered a taxable event, meaning there are no immediate tax consequences.

Q: Are there any deadlines for submitting Form T2151?
A: There are no specific deadlines for submitting Form T2151, but it is recommended to submit the form well in advance of the planned transfer to allow sufficient processing time.