Which transfer to a RRIF cannot be done on a tax-deferred basis?

The transfer from an unmatured RRSP to a RRIF cannot be done on a tax-deferred basis because it is considered an indirect transfer. When funds are withdrawn from an unmatured RRSP, they are generally subject to withholding tax, and the individual must report the withdrawal as income on their tax return for that year. This taxable event occurs because the account holder is effectively liquidating their RRSP assets, as opposed to transferring them directly to another registered account.

In contrast, a direct transfer from a matured RRSP to a RRIF allows the funds to move between accounts without triggering any tax implications, as the account holder has already reached the point where they are required to convert their RRSP into a RRIF. Transfers from a Registered Pension Plan also benefit from tax deferral under similar rules, as do transfers between RRIFs, which are processed without any immediate tax consequences. Thus, the nature of the transfer process and the account status significantly affect whether it can be executed on a tax-deferred basis, making the indirect transfer from an unmatured RRSP the only option that does not meet this criterion.