CRA & Revenu Québec, Forms & Schedules, Income & Investments, Savings & Investments

T2033 Form Direct Transfer

Canadians are, in general, entitled to move money between their registered plans, or their retirement and savings accounts. However, when you do so, the Canada Revenue Agency (CRA) and any financial institutions involved need to be informed of the transfer and you need to claim it. That’s where form T2033 Direct Transfer comes in. You can use this form for transferring funds between various registered plans.

What is a T2033 Form Direct Transfer Used For?

This form covers almost all transfers between two registered savings or retirement accounts, including transfers made due to marriage breakdown or for non-residents. Here is a list of the situations where you may use a T2033 form.

 

Direct Transfer Payments

 

  • Partial or Full Amounts from an RRSP
  • Amounts from an unmatured RRSP
  • Amounts from an SPP
  • Amounts from an PRPP
  • Excess amounts from an RRIF (although the T2033 is no longer mandatory for this purpose)

 

Transfers Due to Divorce or End of a Common-Law Partnership

 

When partnerships dissolve, there is often a reason to transfer property, including money and lump sum payments from one former spouse or common-law partner’s account to another’s. Transfers of this nature that are covered by the T2033 include:

 

  • Lump-sum payments from RPP
  • Amounts from an unmatured RRSP
  • Amounts from an RRIF
  • Amounts from an SPP

 

Transferred Payment for a Non-Resident of Canada

 

Non-residents of Canada may also use form T2033 to move money into or from registered accounts. However, it is important to note that there may be additional tax implications if this money is currently located in another country. Non-residents can use form T2033 to transfer:

 

  • Eligible portion of a retiring allowance
  • Lump sums from RRIF and DPSP
  • Full or partial amounts from RRSP annuity or refund of premiums paid to the beneficiary upon the annuitant’s death
  • Amounts from an unmatured RRSP
  • Amounts from an SPP or PRPP

 

When Can I Transfer Without Using the Form?

Form T2033 Direct Transfer is no longer required if you are transferring property from a RRIF, although you may use it.

 

There are also other circumstances where you may not have to use the paper form, such as:

 

  • You can do an online transfer to eliminate the need for the form
  • Your financial institutions may have their own form you may use instead of a T2033 (so long as this form includes all the relevant information)

 

What is the Difference Between T2030 and T2033?

 

Form T2030 is different from form T2033 as it details only direct transfers that need to be taxed. When you use form T2030 you are transferring money according to the rules listed under subparagraph 60(I)(v) of the Income Tax Act. When you transfer money using form T2030, tax will not be withheld from the transfer.

How to Fill Out Form T2033 Direct Transfer

If you’d like to fill out the paper version of Form T2033 you will need all of the information about the account you are withdrawing from and the account you are sending the money to. You will want to check with CRA’s page on direct transfers to be sure that the transfer you have in mind is allowed.

 

Then you need to complete the form and send all four copies of it to the issuer or current holder of the account from which you are taking money. This financial institution will handle collecting information from the transferee and sending the money and copies of the form to the relevant parties.

 

You should receive one copy of the form when the transfer is completed. It will contain new information about the transferor and transferee.

 

You may need to include an additional form, T2205 if you are transferring money between your account and that of your spouse or common law partner. You only need to include the form if you meet all three of these criteria:

 

  • You or your spouse or common-law-partner made a contribution to your RRSP the year of the transfer or in the past two years
  • You are transferring the amount to buy an annuity that can be commuted in three years or earlier
  • Either part 7. A) or 7. B) of the form is ticked yes. This indicates that either the partner contributed to your RRSP in any previous year or it is an RRIF that includes amounts transferred from an RRSP to which your partner contributed

Where to Get T2033 Form in PDF?

You can get form T2033 from the CRA’s website. Alternatively, your financial institution may have a version of the form that they want you to use instead.