Investment and Retirement

Minimum RRIF payments

For 2016, minimum RRIF and locked-in RRIF payments will be calculated using the new minimum withdrawal factors.

Reminder: when the 2015 federal budget was brought down, the Finance Minister announced a reduction in RRIF minimum withdrawal factors for 2015 and the years following for holders aged 71-94 years, retroactively to January 1, 2015.

Following the Budget’s adoption, SSQ did not change client payments for 2015. For 2016, the amounts will be calculated based on the new minimum withdrawal factors.

Here are some options available to your clients:

2015 Payments

If investors so desire, they may contribute to their RRSP (if the investor was under age 71 on December 31, 2015) or to their RRIF the amounts paid in excess of the reduced minimum amount in 2015 (i.e., the difference between the amounts calculated with the former withdrawal factor compared to the amounts calculated with the new factor).

If the contribution is made by March 1, 2016, the contribution may be deducted from income for the 2015 tax year.

2016 Payments

Investors may request to have their payments increased if the new minimum withdrawal amount is no longer sufficient to meet their income needs. They simply need to send us the new withdrawal instructions.