Question on 8891 and TDF 90-22.1

[pjhowe]

My wife had three RRSP accounts
* account1 : locked in rrsp account
* account2 : spousal rrsp (non-locked)
* account3 : non-locked in rrsp account

My broker in Canada suggested that we merge the two non-locked accounts so as to simplify management

of her funds. Therefore he moved the funds of account3 into account2. This transfer took place in

Dec of 2006.

Note that he indicated that a spousal account that has no activity for x years is looked upon as a

regular non-locked in rrsp account - therefore in essense she had two regular non-locked rrsp

account.

My question is ; Do I need to fill out any special IRS forms - informing them of this transfer ?

This is what I have done - let me know if I have filled this out properly.


8891
I have filled out the 8891 (one for each RRSP account) therefore this tax year we have one less 8891

to fill out.
I filled out the spousal rrsp account form as per normal but the amount jumped up in value due to

the transfer.
Not sure if this needs any further explaination on this form.

TDF 90-22.1 (Rev. 7-2000)
I have filled out the TDF 90-22.1 therefore this tax year we have one less account to report on.
IE; I based this on the foreign accounts we had at the end of the year.

thanks in advance

[nelsona]

two points: As a non-resident, spousal accounts don't have the restrictions of 'no contribution in past 3 years to allow spouse to withdraw rule' so it doesn't matter when the last time you funded that account.

Putting them in oneaccount is a good idea.

For TD form, all accounts that you had during the year have to be reported, even the ones that were closed during the year.

I would also be filing an 8891 for the closed account(s0, with '0' final balance. You could note on the form that you transferred the accounts into another.