Even if the employee did not work for the company prior to 1996, non-eligible retiring allowances can be paid directly to an RRSP up to the amount of any unused contribution limit.

Question

Quizplus · Accepted Answer

Non-eligible retiring allowances can indeed be paid directly into an RRSP up to the amount of the individual's unused RRSP contribution room, regardless of when the employee worked for the company. This allows for a tax-deferred investment of these funds.

Even If the Employee Did Not Work for the Company