RRIF Payment Calculation – Electing Your Spouse’s Age

 

Benefits

  • Reduces your annual mandatory RRIF payment amount
  • Additional assets remain in the RRIF allowing for tax deferred growth
  • No maximum RRIF withdrawal limit, enables you to control the timing of any amount withdrawn above the minimum payment amount

 

RRIF Payment Calculation – A Review

  • CRA determines the mandatory RRIF minimum payment based on a formula
  • Calculation: Value of your RRIF account on December 31st multiplied by a percentage factor based on your age
  • Calculation if electing to use the age of your younger spouse (c/l*): Value of your RRIF account on December 31st multiplied by a lower percentage factor based on your spouse (c/l*)’s age

 

Example: You have alternate sources of income or assets in other accounts that you draw on. Your preference is to keep assets growing tax deferred in your RRIF. By electing your spouse’s age, it decreases your mandatory minimum payment

 

*c/l – common law