Form T2151 records a direct transfer of a single amount from a registered pension plan (RPP) or a deferred profit sharing plan (DPSP) into another registered plan, such as an RRSP, RRIF, another RPP, a pooled registered pension plan or a specified pension plan. Done this way, the amount isn't included in your income, no tax is withheld and no T4A slip is issued, as long as it stays within the transfer rules.
It's the paperwork behind "rolling over" a pension when you leave an employer. Everything below is from the 2025 version of the form and its instructions, as of October 2026.
Who fills in which section
| Section | Who completes it | What happens next |
|---|---|---|
| Section 1, Applicant | You, the plan member or beneficiary | You print and sign four copies and give them to the plan you're leaving |
| Section 2, Transferor's certification | The RPP administrator or DPSP trustee you're leaving | Keeps one copy, sends three to the receiving plan with the funds |
| Section 3, Transferee's certification | The receiving RRSP issuer, RRIF carrier or plan administrator | Returns one copy to the transferor, sends one to you, keeps one |
You don't send a copy to the CRA unless it asks to see one. Section 1 has four parts: Part A for a DPSP, Part B for an RPP, Part C for whether you're moving your whole entitlement or part of it, and Part D for where the funds are going.
Who can use T2151
- An employee or former employee who's a member of the RPP or a beneficiary of the DPSP.
- A current or former spouse or common-law partner, after the member's death.
- A current or former spouse or common-law partner, after a breakdown of the marriage or common-law partnership, where the transfer comes from a court decree, order or judgment, or a written separation agreement dividing property.
Where the funds can go
| From | Can be transferred to |
|---|---|
| DPSP | Another DPSP, an RPP, an RRSP, a RRIF, a PRPP or an SPP |
| RPP | Another RPP, an RRSP, a RRIF, a PRPP or an SPP |
A DPSP can only move to another DPSP if the receiving plan can reasonably be expected to have at least five beneficiaries throughout the year of the transfer.
The catch with pension transfers
This is the part that surprises people leaving a defined benefit pension. Section 147.3 limits how much of an RPP amount can move without tax consequences. Any part that doesn't meet the rules is treated as paid to you as a pension benefit, and the administrator reports it as your income on a T4A slip. That excess is also treated as a contribution to the receiving RRSP, SPP, PRPP or RPP, and you get a receipt for it. If the receiving plan is a RRIF, the excess counts as an RRSP contribution and you get an RRSP receipt.
So a single pension commuted value can split in two: a tax-free transfer, and a taxable slice that lands on a T4A slip with a matching contribution receipt. Whether that receipt can be deducted depends on your own RRSP room, so check before you assume the two cancel out. Item 4 of Section 2 is where the administrator shows the amount it didn't transfer under 147.3 and will report as income.
Locked-in amounts
Item 3 of Section 2 shows whether a lock-in provision applies under federal or provincial pension benefits legislation. If it does, the receiving plan certifies in Section 3 that it'll administer that amount as locked-in. Locked-in funds keep their restrictions in the new plan, and the CRA notes that you generally can't withdraw from locked-in RRSPs.
Transfers that are tax free, and what that means
When an amount moves under subsection 147(19) or one of subsections 147.3(1) to (8), it isn't included in your income and you can't deduct it either. The plan you're leaving doesn't issue a T4A slip or a receipt for it. That's the whole point of a direct transfer: it's neutral for tax, so nothing shows up on your return for that year.
That also means you shouldn't see the transferred amount anywhere on your return. If a T4A arrives for the full amount, ask the old plan whether the transfer was coded correctly before you file, rather than reporting income that should never have been taxable.
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Step by step
- Ask your old plan administrator for your transfer options and the amount, including any part above the 147.3 limit.
- Open the receiving RRSP, RRIF or plan account first, so you have its number and name for Part D.
- Fill in Section 1, tick whole or partial entitlement in Part C, print four copies and sign them.
- Give all four to the old plan, which completes Section 2 and sends three copies and the funds to the new plan.
- Keep the copy the receiving plan sends you, and watch for a T4A and receipt if part of the amount was over the limit.
If you have employment income from the same employer for the year, that still comes on a separate T4 slip. Transfers to buy an advanced life deferred annuity use a different form, T2157.
The verdict
T2151 is how you keep a pension lump sum tax-sheltered when you leave a job. The direct transfer is the point: the funds go plan to plan and never pass through your hands, so nothing is withheld. Ask the administrator up front whether any part exceeds the transfer limit, because that slice is taxable income in the year it's paid.
Frequently asked questions
What is Form T2151?
It's the CRA form that records a direct transfer of a single amount from an RPP or DPSP to another registered plan, such as an RRSP or RRIF.
Is tax withheld on a T2151 transfer?
No. The transferor doesn't withhold income tax from an amount transferred under subsection 147(19) or section 147.3.
Do I send T2151 to the CRA?
No. The form is shared between you and the two plans. Only send a copy if the CRA asks to see it.
What happens if my pension transfer is over the limit?
The excess is treated as paid to you as a pension benefit and reported on a T4A slip. It's also treated as a contribution to the receiving plan, and you get a receipt.
Can I use T2151 after a separation?
Yes, if the transfer results from a court decree, order or judgment, or a written separation agreement dividing property on the breakdown of the relationship.
