unauthorized withdrawal from my i-Trade RIF

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Inquiring Mind
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unauthorized withdrawal from my i-Trade RIF

Post by Inquiring Mind »

i-Trade has just withdrawn the same net amount and the same withholding tax amount from my RIF account as they did last year at this time. Neither amount is what I want. I haven't given them any instructions yet. Also, the amount withdrawn exceeds the cash currently in the account by more than $25,000. Last year they reversed it after a lot of fuss - seemed to blame me. Now I can't get through to a human being after being on hold for hours. How can this happen?!
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AltaRed
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Re: unauthorized withdrawal from my i-Trade RIF

Post by AltaRed »

What instructions do you have in place with them with respect to annual withdrawals? I am not there yet. but I understand you would have given them instructions at the time you established your RRIF and those instructions remain in place until cancelled/revised (seems that way to me if they have done the same thing as they did last year).

http://www.scotiabank.com/itrade/en/fil ... a_SDRP.pdf See about halfway down.
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Re: unauthorized withdrawal from my i-Trade RIF

Post by Jaunty »

BMO IL advised us to set my wife's RRIF instructions for a mid-December withdrawal and to call at any time earlier in the year to give them the actual instructions for that year. We typically call and withdraw in June or July when enough cash has accumulated - and, importantly, avoid the OP's issue.
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Re: unauthorized withdrawal from my i-Trade RIF

Post by AltaRed »

Different brokerages obviously do different things and I merely wanted to point out that in iTrade where I also have an RRSP, the RIF withdrawal instructions are initially set when the RRIF is set up to begin with. I don't know what mechanisms are in place (or what needs to be done) to change those instructions in current and/or forward years. IOW, it may be misrepresentation for the OP to suggest 'unauthorized withdrawal'. I'd ask the OP to let us know here once he finds out......
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Shakespeare
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Re: unauthorized withdrawal from my i-Trade RIF

Post by Shakespeare »

I simply sent a letter asking minimum withdrawals semiannually. I just make sure there is enough cash in the account for the withdrawal. No tax is withheld.
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Re: unauthorized withdrawal from my i-Trade RIF

Post by Inquiring Mind »

I forgot to mention that the withdrawal last year was not at my request and was subsequently reversed. I'm annoyed because they just did it again.
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AltaRed
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Re: unauthorized withdrawal from my i-Trade RIF

Post by AltaRed »

Inquiring Mind wrote: 15 Jan 2018 19:59 I forgot to mention that the withdrawal last year was not at my request and was subsequently reversed. I'm annoyed because they just did it again.
Yeah, but what did you input into the RRiF application for withdrawal provisions when you opened the RIF? That is the question I am asking (see the form I linked). It does not matter what you asked, or didn't ask, last year IF you entered certain data in the original RIF application.

And if you did get a reversal last year, what revised form/letter did you send in to change the withdrawal provisions for future years, i.e this year and years following this year? Those are important details that I'd want to know before I would complete the RRIF application form in the first place (which I will have to do in 2021 if I don't move the account to another brokerage).
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Re: unauthorized withdrawal from my i-Trade RIF

Post by deaddog »

Shakespeare wrote: 15 Jan 2018 18:09 I simply sent a letter asking minimum withdrawals semiannually. I just make sure there is enough cash in the account for the withdrawal. No tax is withheld.
Are you paying tax quarterly?

I have them withhold 30% as that is my marginal rate after I pay tax on everything else.
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Shakespeare
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Re: unauthorized withdrawal from my i-Trade RIF

Post by Shakespeare »

Yes, I pay installments. No tax is deducted on RRIF minimums unless you request it.
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Re: unauthorized withdrawal from my i-Trade RIF

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deaddog wrote: 15 Jan 2018 21:21 Are you paying tax quarterly?

I have them withhold 30% as that is my marginal rate after I pay tax on everything else.
We are getting off-topic but I will eventually have my RRIF withhold tax at a minimum of my MTR as well.... to mitigate even larger installment payments.
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Re: unauthorized withdrawal from my i-Trade RIF

Post by Inquiring Mind »

I think Alta Red has nailed it. I'm heading down to their offices today to verify what's on file and make sure the instructions are what I want going forward. They have agreed to reverse the withdrawal - I just had to email a statement of intent to withdraw the minimum this year. Thanks for all the comments.
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