What actions are required to take advantage of the federal government’s reduction in the mandatory RRIF withdrawal amount due to COVID-19?
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Our response:
As part of the federal government’s economic measures to help Canadians handle financial challenges resulting from the COVID-19 pandemic, the minimum annual amount required to be withdrawn from a Registered Retirement Income Fund (RRIF) was reduced by 25% for the 2020 tax year.
You should contact your financial institution or financial adviser to convey your wishes to reduce your minimum amount. If you have already withdrawn more than the reduced 2020 minimum amount, you are not permitted to re-contribute any excess to your RRIF. Be aware that the regular prescribed factors will apply in 2021.
For more information, please see the Government of Canada website.
We suggest speaking with a registered representative to provide advice that fits your personal and financial goals and circumstances. The COVID-19 & your money hub along with the other resources available on GetSmarterAboutMoney.ca may be helpful to build your financial knowledge.