The 2015 Federal Budget changed the rules governing registered retirement income funds, or RRIFs, to allow seniors to preserve their tax-sheltered assets for longer. These changes apply to all types of RRIFs, including Life Income Funds (LIFs) and other locked-in retirement accounts. The government lowered the RRIF minimum withdrawal percentages that apply from age 71 to 94. The rate is 2.1 percent lower at 71; so 5.28% down from 7.38%. This rule came into effect for tax year 2015.<\/p>\n
In fairness, RRIF holders who at any time in 2015 withdrew more than their new minimum annual withdrawal amount are permitted to re-contribution the \u2018excess\u2019 to their RRIF. Excess means the difference between the amount withdrawn using the previous 2015 minimum and the new withdrawal amount. You may re-contribute any amount up to, but not exceeding the difference. At age 71, on $100,000 of RRIF capital, the re-contribution opportunity is $2,100. 2015 RRIF re-contributions are permitted until February 29, 2016.<\/strong><\/p>\n Who might benefit?<\/p>\n A re-contribution amount will be tax deductible for tax year 2015. You receive an official tax receipt that indicates it is a 2015 RRIF re-contribution. That way, you report the net reduced 2015 RRIF minimum amount in taxable income\u2014T4RIF Box 16 Taxable amounts less 2015 RRIF re-contribution deduction.<\/p>\n Check with your tax adviser on the merits of a re-contribution for you. Take action with your investment manager before the deadline.<\/p>","protected":false},"excerpt":{"rendered":" The 2015 Federal Budget changed the rules governing registered retirement income funds, or RRIFs, to allow seniors to preserve their tax-sheltered assets for longer. These changes apply to all types of RRIFs, including Life Income Funds (LIFs) and other locked-in retirement accounts. The government lowered the RRIF minimum withdrawal percentages [\u2026]<\/span><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[13],"class_list":["post-1082","post","type-post","status-publish","format-standard","hentry","category-planning","tag-rrif"],"yoast_head":"\n\n