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Registered Savings Plans

Q. Is it possible to transfer OSBs to a self-directed RSP?
A.

Yes. OSBs can be placed into a self-directed RSP at any time.

Q. What are a bondholder's options when OSB RSPs mature?
A.

As each series of Bonds Matures, a Bondholder has two options:

  1. Transfer the proceeds to another RSP or registered plan – by sending the Trustee (i.e. the Registrar) a T2033 transfer form from the RSP administrator prior to maturity; or
  2. Withdraw the funds and pay the tax owing on the amount withdrawn – by sending the Trustee (i.e. the Registrar) a letter of direction prior to maturity.

NOTE, if notice is not provided, the Trustee will maintain the matured value in a dormant status and will no longer earn interest after maturity. The Trustee will maintain the record until such time as notice of direction is provided or until such time as the registered holder reaches the age of 71.

If no notice has been received by this time, the plan will be collapsed and withholding tax taken and submitted to CRA per Section 146(12)(b) of the Income Tax Act, Canada Revenue Agency requires RRSP's terminate by December 31st the year in which the registered owner turns 71.

More information related to RSPs can be obtained by calling the Registrar at 1-800-501-7725.

Q. What happens to the OSB RSPs if the Bondholder turns 71 before the Bonds mature?
A.

If the Bondholder turns 71 before the Bonds mature, the Bondholder must collapse the OSB RSP and either:

  1. withdraw the Bonds and any cash;
  2. transfer the Bonds and any cash to a Registered Retirement Income Fund; or
  3. purchase an annuity.

If the Bondholder withdraws the assets, the value must be included in the Bondholder’s income for that year. If the assets are transferred to a Registered Retirement Income Fund or if an annuity is purchased, they will continue to be tax-sheltered.

For more information related to RSPs can be obtained by calling the Registrar at 1-800-501-7725.

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