RRIF FAQ

2015 CRA RRIF Minimum Changes FAQ


The federal government has made changes to the minimum amount required as a withdrawal from a RRIF plan effective January 1, 2015. This change is reflective of more recent long-term historical rates of return and expected inflation. If you haven’t received your RRIF annual minimum payment for 2015 or if you have a received a partial payment of your annual minimum payment you may request to have your RRIF payment amended to the new 2015 minimum amount. If you have received your payment based on the old minimum amount, you are eligible for a re-contribution of the difference between the old minimum amount and the new reduced minimum amount if you choose. If you would like to request a change to your annual minimum payment, please visit your local PenFinancial branch.


What changes have been made to the RRIF minimums?
The 2015 Federal Budget released measures to reduce the withdrawal factor for Registered Retirement Income Funds (RRIFs) for annuitants between the ages of 71 and 94.


When are these changes effective?
These changes are effective retro-actively to January 1, 2015.


Will PenFinancial automatically reduce my 2015 minimum payment based on changes imposed by the 2015 Federal Budget?
No. For 2015, PenFinancial will pay out RRIF minimums based on the ‘old’ withdrawal factors. If you would like to have your payment(s) modified to reflect the ‘new’ minimum withdrawal factors, you must provide specific instructions to do so.


I have a RRIF that was issued prior to 1993 (i.e. Qualified RRIF). Do these changes apply?
Yes, these changes apply to all types of RRIFs.


What happens if I’ve already taken my minimum payment, or I do not want to modify my periodic payments for 2015?
You may be eligible for a re-contribution to your RRIF if you have withdrawn more than the new minimum for your age in 2015 as a result of this reduction. You will be permitted to re-contribute the excess, representing the calculated difference between the existing minimum withdrawal amount, and the new reduced minimum withdrawal amount. The re-contribution will be deductible for the 2015 tax year.


How do I request a change to my payment amount?
If you would like to request a change to your annual minimum payment please visit your local PenFinancial Credit Union branch.


How do I determine my eligibility for a re-contribution to my RRIF?
If you have already received your RRIF annual minimum payment for 2015, or choose not to adjust your remaining payments to reflect the new minimum, you may be eligible for re-contribution. Speak to one of our representatives more information to help you determine your eligibility for a RRIF re-contribution.


How long do I have to re-contribute my eligible amount?
You have until February 29, 2016 to make an eligible re-contribution.
When a re-contribution is made, you will receive a re-contribution receipt exclusively for the re-contributions made to a RRIF for the 2015 Tax Year only.


What happens if I choose not to re-contribute the eligible amount?
If you choose not to re-contribute the eligible amount, it will be reported in Box 16 of the T4RRIF slip as a taxable amount. This amount will not be subject to excess withholding taxes for the 2015 taxation year. Only amounts withdrawn in excess of the “old” minimum amount will be subject to excess withholding taxes for 2015 only.


Can I make a partial re-contribution?
Yes. If you are eligible for a re-contribution, you may re-contribute any amount up to, but not exceeding the difference between the old minimum and the new minimum.


I have more than one RRIF held by different institutions. If I choose to direct all of my eligible re-contributions to my RRIF held at PenFinancial, will PenFinancial provide me with a confirmation that I have not exceeded my total eligible re-contribution amount?
No, it is your responsibility to ensure that you are not over re-contributing to your RRIF(s). PenFinancial cannot track what other RRIFs you may have with other financial institutions. PenFinancial will only provide you with confirmation of the eligible re-contribution amount for any RRIFs held at PenFinancial Credit Union.


I am currently taking a specified payment amount over the old RRIF minimum, what amount am I eligible to re-contribute?
You may only be eligible to re-contribute the difference between the old minimum and the new minimum for the 2015 tax year.


What will I receive when I make an eligible re-contribution?
You will receive a contribution receipt that will indicate that it is a 2015 re-contribution to your RRIF as well as an Eligible Withdrawal Amount letter.


When will my re-contribution receipt and eligible withdrawal amount letter get mailed?
You can expect to receive your re-contribution receipt and eligible withdrawal amount letter in March 2016. Exact mailing dates have not been released

 

Locations

Enter address, postal code or branch name