Q&A: Holiday pay

Question: When I retire, I will be receiving a sum of money for extra holidays that amounts to $35,000. This is over and above my pension. Can I roll that sum of money into a LIRA? – Lynne C.

Gordon Pape answers: The wording of your question is somewhat vague but it appears the answer is no, you cannot roll any of this money into an RRSP (you wouldn’t roll a retiring allowance into a LIRA since qualifying money does not have to be locked in). CRA Interpretation Bulletin #IT-337R4 states specifically that no part of “accrued vacation pay” is eligible for transfer to an RRSP. If your reference to “extra holidays” relates to something other than accrued vacation pay, you can check out the Bulletin here.

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Photo ©iStockphoto.com/ Lynn Seeden