Minimum income rules for Registered Retirement Income
aliko-aapayrollservices.com - Small businessess from 1 to 80 employees outsource your payroll management to us and let us worry about your payroll processing.
RSS Follow Become a Fan

Delivered by FeedBurner


Recent Posts

Tax changes to expect when you’re expecting
2016 Tax Tips for 2015 Filing Year
From Proprietorship to Corporation - When is the Best Time to Incorporate?
Tax Specialists Brief your Clients About CRA Fraud And E-Mail Scams
Bank of Canada cuts rates again

Most Popular Posts

Help your teenager build credit responsibly
Being an Executor of an Estate
Anti-Aging
Student Line of Credit
Principal Residence Exemption

Categories

aliko nutrition store- isotonix
aliko payroll services
canada revenue news and videos
canadian news
CPP ,OAS RRIF ANNUITY
Cross border Tax
Disability awareness and Benefits for disabled
estate planning
FINANCIAL LITERACY
HEALTH & NUTRITION
Home Car Insurance
Income Splitting Strategies in Retirement
INVESTING
kids and money -set your children up for financial success
life insurance
on line safety tips
online safety tips
PAYROLL
Real Estate - Investments / Retirement
RETIRE HAPPY BLOG
Retirement planning
SAVE YOUR MONEY
Save your money
SERVICE CANADA NEWS
small business planning
Tax Information for Students
tax news
tax planning
tax tips.ca
Tech news
TFSA

Archives

January 2016
July 2015
May 2015
April 2015
February 2015
December 2014
November 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013

powered by

MY BLOG

Minimum income rules for Registered Retirement Income

Minimum income rules for Registered Retirement Income
 
 
 
 
 
 
Minimum income rules for Registered Retirement Income
 
 
 
 
Written by Jim Yih2 Comments
When you reach retirement and it comes time to take regular income out of your RRSPs, the vehicle of choice is the Registered Retirement Income Fund (RRIF). Although you can make withdrawals from a RRSP, the point of a RRSP is to accumulate funds for retirement. That’s why they call it a savings plan.
The RRIF is much like an RRSP from the perspective that you can invest in lots of different things like GICs, bonds, mutual funds, stocks, etc. As long as the money stays in the account, whether it is a RRSP or RRIF, the money continues to grow tax deferred. The RRIF differs from an RRSP in that you cannot put direct contributions into a RRIF and with a RRIF, you must take out a minimum amount each and every year. This is called the Minimum Income.
How is the minimum income determined?
Here’s the formula for the minimum income on the RRIF:
1 / (90- age)
For example, if you are 65 years of age, 90 minus 65 is 25. One over 25 is 4%. At 65, you must take out at least 4% of the RRIF balance at the beginning of the year in income. If you had $100,000 in the RRIF, you would need to take out at least $4000.
Age Minimum
65 4.00%
66 4.17%
67 4.35%
68 4.55%
69 4.76%
70 5.00%
71 7.38%
72 7.48%
73 7.59%
74 7.71%
75 7.85%
76 7.99%
77 8.15%
78 8.33%
79 8.53%
80 8.75%
81 8.99%
82 9.27%
83 9.58%
84 9.93%
85 10.33%
86 10.79%
87 11.33%
88 11.96%
89 12.71%
90 13.62%
91 14.73%
92 16.12%
You can see that at age 71, the minimum income jumps dramatically to 7.38% and no longer follow the formula 1/(90-age). At 71, the minimum income amount is predetermined by the government. You can see that as you get older, the minimum percentage increases.
For more information on RRIFs, check out one of Jim’s most popular articles:
 
 
 
 
 
 
 

0 Comments to Minimum income rules for Registered Retirement Income :

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment