Special Message for RRIF Members: Government allows reduction in 2020 mandatory minimum payment - up to 25%
The federal government announced a number of measures in mid-March intended to assist Canadians during COVID-19.
One is the offer of a reduction on RRIF minimum payments. At a time when interest earning rates are low, RRIF annuitants may prefer not to withdraw as much of their funds at this time but would rather wait with the hope that, after COVID-19 calms down, interest earning rates will rise.
While annuitants are still required to withdraw funds from their RRIF, they may choose to reduce the RRIF mandatory minimum payments for this year by up to 25%.
- The government of Canada stipulates that the reduction does not apply to RRIF payments that have been taken already.
- In addition, if you've already received payments, the government does not permit a re-contribution of the reduced amount.
Check with your tax advisor to determine if a reduction is in your best interests. Then, if you wish to reduce your future mandatory minimum RRIF payments this year by up to 25%, call us at 1.866.900.3822.