Posted by lbourgeois
on Thursday, March 25, 2010.
Categories: RRIF
- Less than 40% of Canadian workers have a pension plan through their employer. Once retired they will have to wait until age 65 for thier RRIF payments to qualify for the $2,000 Federal Pension Income Credit (provincial credit varies per province).
- When receiving only the minimum payment tax will NOT be withheld by most data systems. Suggest the annuitant completes a TD1 to request tax be withheld at source which may assist in eliminating the need for quarterly tax payments to CRA.
- A “Qualifying” RRIF is any RRIF purchased in 1992 or before that had no new RRSP funds transferred into it after 1992. ‘Qualifying” RRIFs have a smaller minimum payment than a “Non-Qualifying” RRIF between the ages of 71 and 77. At age 78 and older, the minimum payment is the same for both ‘Qualifying” and Non-Qualifying” RRIFs.
- RRIFs can be established at any age.
- Provided the annuitant is under age 71 and the minimum payment for the year has been received, all future RRIF payments can be stopped by transferring all funds back to an RRSP.