# RRIF withdrawal help



## Benting (Dec 21, 2016)

My 90% stocks RRIF account has gained more than 20% this year. That means I would have to withdraw all the profit next year instead of the minimum withdrawal rate I set. The end result is I would have to pay helfty tax and claw back of my OAS. Is there anyway I can do to soften the blow ? One way I can think of is I withdraw more before the end of this year to reduce the total sum of my acc. So that it would spread out the income for this year and next. As for how much I still need to figure out. Is there any web site you CMF members would recommand me to check ? 
Other than this, are there any other ways to reduce the tax for my next year's income ?
Thank in advance.


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## OnlyMyOpinion (Sep 1, 2013)

*I would have to withdraw all the profit next year... *
Not so. Your withdrawl will be based on your age and the total RRIF balance at the start of next year.
You don't have to take out all of the gains, only a minimum % of the account balance.
Per: _2.To determine the required minimum withdrawal, we apply a percentage factor corresponding to the RRIF holder’s age at the beginning of the year to the value of the RRIF assets at the beginning of the year. When the RRIF is established, the holder also has the option to base the minimum withdrawals on the age of their spouse or common-law partner._
http://www.cra-arc.gc.ca/gncy/bdgt/2015/qa02-eng.html


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## Benting (Dec 21, 2016)

Thank you very much OMO.
I know the min and max withdrawal rate base on my age (actually my wife's since she is younger than I am) and the value of my account at the end of the year. But if the gain of the asset of the year is greater than the min which that I set, then I required to withdraw the total gain. I am with BMO investor line. 2 years ago in a similar situation, to my surprise, that I was told by BMO that I need to withdraw the amount of total gain of the year. Well I need to check with BMO to make sure.


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## OptsyEagle (Nov 29, 2009)

You sound like you are perhaps talking about a locked in RRSP that has been turned into a Life Income Fund (LIF) not a regular RRIF.

Let us know if I am right and if so, what jurisdiction regulates your plan and perhaps someone here might be able to answer your question. If you are talking about a regular RRIF, then what you say is as wrong as it can possibly be. So let us know before you do anything that might be costly.


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## like_to_retire (Oct 9, 2016)

Benting said:


> Thank you very much OMO.
> I know the min and max withdrawal rate base on my age (actually my wife's since she is younger than I am) and the value of my account at the end of the year. But if the gain of the asset of the year is greater than the min which that I set, then I required to withdraw the total gain. I am with BMO investor line. 2 years ago in a similar situation, to my surprise, that I was told by BMO that I need to withdraw the amount of total gain of the year. Well I need to check with BMO to make sure.


Certainly the capital gain through the year is considered as it will increase the year end total (in this case by 20%), but the percentage factor corresponding to the holders age is simply applied against that total year end amount. The BMO agent was incorrect, as agents at banks are often not well informed.


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## GreatLaker (Mar 23, 2014)

Benting said:


> But *if the gain of the asset of the year is greater than the min which that I set, then I required to withdraw the total gain.* I am with BMO investor line. 2 years ago in a similar situation, to my surprise, that I was told by BMO that I need to withdraw the amount of total gain of the year.


Do you mind saying what type of product or security you are holding with BMO? What you stated (that I put in bold above) does not sound like the regulatory requirements for a RRIF. Maybe it is a parameter of the product you got from BMO.


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## Numbersman61 (Jan 26, 2015)

Never heard of a situation such as this. If it proves that BMO provided bad advice, dump them.
http://taxtips.ca/rrsp/rrifminimumwithdrawal.htm


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## OptsyEagle (Nov 29, 2009)

Before we dump all over the banker's advice, I asked if this was a locked in plan because where the original poster is indicating advice on the minimum payment, it is possible the banker was giving advice on what his maximum payment might be. This would only apply if the RRSP/RRIF is locked in.

See this link below:

http://www.agf.com/static/en/learning-centre/income-for-retirement/locked-in-rrifs/index.html




> The LIF/LRIF annual maximums are usually calculated as the greater of:
> 
> 1 the investment gains from the account in the previous calendar year, or
> 2 an amount determined by multiplying the beginning of year balance by a prescribed factor, which depends on current long term interest rates and the plan owner's age.


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## Benting (Dec 21, 2016)

OptsyEagle said:


> You sound like you are perhaps talking about a locked in RRSP that has been turned into a Life Income Fund (LIF) not a regular RRIF.
> 
> Let us know if I am right and if so, what jurisdiction regulates your plan and perhaps someone here might be able to answer your question. If you are talking about a regular RRIF, then what you say is as wrong as it can possibly be. So let us know before you do anything that might be costly.


*You are absolutely right OptsyEagle !* Thanks.

So Sorry, I mixed up with RRIF and LIF. This LIF account value is quite small. I wanted to clean it up as soon as possible. So I setup to withdraw max from this account each year. From the web site that Numberman61 (big thanks) leads me to indicate that max I can only withdraw is based on the withdrawal table, or the total gain of the year, whichever is greater. In my case it would be latter. That was exactly the case 2 years ago. And, RRIF do not have this rule !

Thank you all and have a *GREAT NEW YEAR *!!!


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