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If an SRS member passes away, any sum standing in his SRS account shall be deemed to be withdrawn on the date of his death.
SRS members who have not started the 10-year withdrawal period will enjoy the full tax exemption of $400,000.
Otherwise, the exemption amount will be adjusted based on the prior withdrawals made, and the number of years remaining in the 10-year withdrawal period.
50% of any remaining amount of such a full or deemed withdrawal would then be subject to tax i.e. 50% of {full or deemed amount withdrawn on death - [amount exempt from tax or adjusted exemption amount - amount withdrawn on medical/retirement ground in year of full withdrawal/death (capped at $40,000)]} is subject to tax.
