RRIF minimum withdrawal reduction: what you need to know

 

To help Canadians cope with the financial impact of COVID-19, the federal government announced an Economic Response Plan. As part of this, Canadians with a Registered Retirement Income Fund (RRIF) and other registered income plan types will have the option to reduce their required minimum withdrawals by up to 25% in 2020. This aims to help seniors through the global economic crisis. 

We know you’re getting questions from Clients with a desire to lower their payments. We recommend providing a detailed explanation of the options to each Client before discussing any changes to their account(s).  

 

Following CRA’s formal guidance, Guaranteed Wealth (Insurance GICs, Trust GICs) has adjusted our operational processes to administer these changes. 

 

We will not automatically lower the withdrawal amount. You and/or the Client are responsible for calculating the reduced annual minimum. The RRIF minimum reduction will apply to the entire minimum annual payment. 

 

FAQ to help with Client conversations. 

 

For Clients with a scheduled minimum payment withdrawal, provide Guaranteed Wealth with the reduced minimum amount and the specific dollar amount for payments going forward. For all other withdrawal types, such as an ad hoc withdrawal of the minimum amount, be explicit that the Client would like their minimum annual payment reduced. You may provide instructions in writing or over the phone.

 

Contact: Request Centre Communications - Savings and Retirement - inquire or Advisor Service Centre at 1-800-800-4SUN (Options 1, 2, 1)