RRIF Withdrawal

Preparing for life after work. RRSPs, RRIFs, TFSAs, annuities and meeting future financial and psychological needs.
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kcowan
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Re: RRIF Withdrawal

Post by kcowan »

Do they charge for all the sell transactions?
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Re: RRIF Withdrawal

Post by deaddog »

optionable68 wrote: 04 Nov 2017 13:06 How does TDDI determine which security to sell in order to fund a RIF withdrawal?


Is it a managed or self directed RIF?

If it is managed they probably have a formula.
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Re: RRIF Withdrawal

Post by CROCKD »

I have a self directed RRIF. In my case I gave instructions of how much to sell of which security(s).
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Re: RRIF Withdrawal

Post by Taggart »

I'll be converting to a RRIF in a couple of years, and had planned just to sell my own assets into cash before withdrawal.
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Re: RRIF Withdrawal

Post by twa2w »

twa2w wrote: 04 Nov 2017 13:51 You would have to ask TDDI their process but how some banks do it is as follows.

From fixed income first. Shortest maturity first, lowest rate if equal muturity dates.

If in mutual funds or etfs, from lowest risk to highest. MMF, bond, balanced, Cdn equity, US, Intnl

Equities are last and can't speak to order they would sell in. Maybe highest priced to lowest.
I presumed you meant if you did not have cash in the account and were not available for direction and could not be reached.

I should add that if your scheduled payment is earlier in the year, they may not process it in the absence of cash or instructions. However if scheduled for Dec end, they likely would.
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Re: RRIF Withdrawal

Post by Shakespeare »

I just sell enough for the withdrawal ahead of time.
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Re: RRIF Withdrawal

Post by Jo Anne »

Shakespeare wrote: 04 Nov 2017 18:46 I just sell enough for the withdrawal ahead of time.
That's what we do.
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optionable68
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Re: RRIF Withdrawal

Post by optionable68 »

Jo Anne wrote: 04 Nov 2017 22:05
Shakespeare wrote: 04 Nov 2017 18:46 I just sell enough for the withdrawal ahead of time.
That's what we do.
OK, but does TDDI look at RIF cash first for RIF distribution, or will they surprise us by selling a security ?
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Re: RRIF Withdrawal

Post by AltaRed »

Twa2w gave you a possible sequence. Ask TDDI to be sure.
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Re: RRIF Withdrawal

Post by twa2w »

optionable68 wrote: 06 Nov 2017 19:38
Jo Anne wrote: 04 Nov 2017 22:05
Shakespeare wrote: 04 Nov 2017 18:46 I just sell enough for the withdrawal ahead of time.
That's what we do.
OK, but does TDDI look at RIF cash first for RIF distribution, or will they surprise us by selling a security ?
Any RIF provider would take your payment from the cash portion of your RIF first if there is sufficient cash funds.
If there is insufficient cash and you have not provided instructions, then yes they will have to sell something to pay your minimum payment or remove a portion of your investment in kind.
This will depend on the provider as to their process. Best to contact them directly.
If you do, please update this thread. Always good to know.
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Re: RRIF Withdrawal

Post by gsp_ »

IME with TDDI RRIFs if cash is not available for a scheduled monthly payment, the cash position becomes negative and they send you a reminder to correct it quickly by selling something.
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Re: RRIF Withdrawal

Post by optionable68 »

gsp_ wrote: 07 Nov 2017 07:23 IME with TDDI RRIFs if cash is not available for a scheduled monthly payment, the cash position becomes negative and they send you a reminder to correct it quickly by selling something.
Yes, I have confirmed with TDDI that they will not liquidate any holdings. They will use all available cash in the RIF and the put the balance in a negative cash position. So basically, its up to the RIF holder to ensure they have enough cash in the account to fund the RIF distribution.
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Re: RRIF Withdrawal

Post by Katou »

Hi...If my Father never had a RRSP can he still put some funds in a RRIF at age 80
Or if he had had a RRSP is it to late ....
Thks
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Re: RRIF Withdrawal

Post by AltaRed »

A RRSP has to be converted to an RRIF, converted into an annuity, or withdrawn as a lump sum.... in the year in which someone turns 71 years of age.
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Re: RRIF Withdrawal

Post by gsp_ »

And no contribution can be made to a RRIF.

Last RRSP contribution one can make is at the end of the year they turn 71.
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Re: RRIF Withdrawal

Post by twa2w »

gsp_ wrote: 10 Dec 2017 19:14 And no contribution can be made to a RRIF.

Last RRSP contribution one can make is at the end of the year they turn 71.
With one exception. If he has contribution room, and has a spouse 71 or younger, he can contribute to a spousal RSP until the end of the year the spiyse turns 71.
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Re: RRIF Withdrawal

Post by Katou »

Thks so far...

His wife is 80 ....!
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Re: RRIF Withdrawal

Post by kcowan »

twa2w wrote: 10 Dec 2017 20:03With one exception. If he has contribution room, and has a spouse 71 or younger, he can contribute to a spousal RSP until the end of the year the spiyse turns 71.
Yes. He might have to track down the contribution room after all these years. But it seems that train has left the station until he remarries.
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Re: RRIF Withdrawal

Post by OptsyEagle »

Katou wrote: 10 Dec 2017 18:45 Hi...If my Father never had a RRSP can he still put some funds in a RRIF at age 80
Or if he had had a RRSP is it to late ....
Thks
Depending on his income (if he is not in a high tax bracket) a Tax Free Savings Account (TFSA) would probably be a better option for him anyway. Since he is older then 71, it is the only tax sheltered option that is available. Make sure he has the contribution room available before making any deposits to a TFSA.
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Confirmation of $: RRIF Withdrawal

Post by JohnJacob »

I'm taking care of my mother's RIF. In previous years this was done by Investors Group.

I know the the RIF payment is "based on the balance at close of previous year" and the Prescribe factors based on age. I have all this information and have calculated an annual payment. No problem. I'm good.

But...

I've assumed that there is some sort of CRA NoA for the minimum RIF withdrawal but I can't seem to find one. The RIF account is RBC DI so self-directed. I don't see any $ amount on the account website from them that verifies the minimum withdrawal amount. Phoning RBC DI is on my to-do list on Monday but until then....

How do I know the CRA agrees or disagrees with the amounts withdrawn? Do I only find out when my mother submits her taxes and is then audited for this?
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Re: RRIF Withdrawal

Post by AltaRed »

I may be missing something, but how can CRA know the value of the RIF at the end of each calendar year? Why would there be a CRA notice? It is up to you (and your FI) to determine the minimum withdrawal amount.

I am not in RIF territory yet, but I would suspect RBC DI will advise you of the amount at some point. It is rather early in January to be doing so but maybe it will be shown on the December RIF statement when it is issued.
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Re: RRIF Withdrawal

Post by Shakespeare »

You should get a letter from RBCDI in a couple of weeks with the minimum amount.
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Re: RRIF Withdrawal

Post by JohnJacob »

AltaRed wrote: 05 Jan 2019 11:40 I may be missing something, but how can CRA know the value of the RIF at the end of each calendar year? Why would there be a CRA notice? It is up to you (and your FI) to determine the minimum withdrawal amount.
I don't believe that the CRA leaves it up to the taxpayers to calculate a correct amount and CRA just agrees with their math :)

For the CRA, I assumed that there would be some sort of feed-back reporting mechanism between RBC DI & CRA 'later' and hence I wouldn't know until the tax forms are submitted and audited. I assumed that there would be an official 'now' answer (it being January 5th and all :wink: ) but it looks like I just need to wait for the official confirmation.
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Re: RRIF Withdrawal

Post by theoldtimer »

My RRIF at CIBC Investor's Edge was updated on Thursday with the new 2019 withdrawal amount.

On the "Account Details" page it shows the date of the scheduled withdrawal and the amount.
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Re: RRIF Withdrawal

Post by RBull »

JohnJacob wrote: 05 Jan 2019 12:18
AltaRed wrote: 05 Jan 2019 11:40 I may be missing something, but how can CRA know the value of the RIF at the end of each calendar year? Why would there be a CRA notice? It is up to you (and your FI) to determine the minimum withdrawal amount.
I don't believe that the CRA leaves it up to the taxpayers to calculate a correct amount and CRA just agrees with their math :)

For the CRA, I assumed that there would be some sort of feed-back reporting mechanism between RBC DI & CRA 'later' and hence I wouldn't know until the tax forms are submitted and audited. I assumed that there would be an official 'now' answer (it being January 5th and all :wink: ) but it looks like I just need to wait for the official confirmation.
As Shakespeare said you will soon receive a letter from the bank listing the acct 2018 ending balance, minimum, maximum withdrawals and elected date/frequency/amount (minimum etc).

They are saying sending out "early January" on their phone message. My last 2 years letters were dated Jan 27, 29. You can call RBCDI with instructions, or go to local bank branch, or provide instructions/questions etc online RBCDI with the secure email. I expect at some point a letter will be redundant and info will be available online earlier, like some competitors seem to have.
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