unauthorized withdrawal from my i-Trade RIF
-
- Contributor
- Posts: 94
- Joined: 14 Jan 2009 10:31
unauthorized withdrawal from my i-Trade RIF
i-Trade has just withdrawn the same net amount and the same withholding tax amount from my RIF account as they did last year at this time.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 Also, the amount withdrawn exceeds the cash currently in the account by more than $25,000.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?!
Re: unauthorized withdrawal from my i-Trade RIF
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.
http://www.scotiabank.com/itrade/en/fil ... a_SDRP.pdf See about halfway down.
finiki, the Canadian financial wiki The go-to place to bolster your financial freedom
Re: unauthorized withdrawal from my i-Trade RIF
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.
Re: unauthorized withdrawal from my i-Trade RIF
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......
finiki, the Canadian financial wiki The go-to place to bolster your financial freedom
- Shakespeare
- Veteran Contributor
- Posts: 23396
- Joined: 15 Feb 2005 23:25
- Location: Calgary, AB
Re: unauthorized withdrawal from my i-Trade RIF
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.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
-
- Contributor
- Posts: 94
- Joined: 14 Jan 2009 10:31
Re: unauthorized withdrawal from my i-Trade RIF
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.
Re: unauthorized withdrawal from my i-Trade RIF
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.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.
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).
finiki, the Canadian financial wiki The go-to place to bolster your financial freedom
Re: unauthorized withdrawal from my i-Trade RIF
Are you paying tax quarterly?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.
I have them withhold 30% as that is my marginal rate after I pay tax on everything else.
"And the days that I keep my gratitude higher than my expectations, well, I have really good days" RW Hubbard
- Shakespeare
- Veteran Contributor
- Posts: 23396
- Joined: 15 Feb 2005 23:25
- Location: Calgary, AB
Re: unauthorized withdrawal from my i-Trade RIF
Yes, I pay installments. No tax is deducted on RRIF minimums unless you request it.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
Re: unauthorized withdrawal from my i-Trade RIF
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.
finiki, the Canadian financial wiki The go-to place to bolster your financial freedom
-
- Contributor
- Posts: 94
- Joined: 14 Jan 2009 10:31
Re: unauthorized withdrawal from my i-Trade RIF
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.