The budget proposes to reduce the RRIF minimum withdrawal rates for taxpayers age 71 and over to reflect the
longer life spans of Canadians and existing investment return rates. These measures will be effective for the
2015 and subsequent taxation years.
If a taxpayer has already withdrawn more than the new reduced minimum amount, they will permitted
to re-contribute the excess amount up to the previous minimum back into their RRIF. The deadline for
recontributions is February 29, 2016 and the amount will be deductible for the 2015 year. Similar rules will apply
to taxpayers receiving annual payments from a defined contribution RPP or PRPP.
Scott Tomenson,CIM Managing Partner, Chief Investment Strategist