On March 25, 2020, the federal government adopted Canada’s COVID-19 Economic Response Plan which provides a 25% reduction of the Registered Retirement Income Fund (RRIF) minimum withdrawal amount for 2020. This is a welcome relief to retirees who may have suffered a decline in the value of their RRIFs since January 1, 2020.

Life income funds (LIFs), locked-in retirement income funds (LRIFs) and restricted life income funds (RLIFs) are hereby designated as RRIFs. The new 2020 RRIF minimum withdrawal amount now corresponds to 75% of the minimum calculated on January 1, 2020 (former minimum).

This applies to all individuals who requested their 2020 minimum payment and who have not fully received it as of March 24, 2020. Please contact us directly if you wish to take advantage of this measure.

The Canada Revenue Agency (CRA) rules do not allow any possibilities of reimbursement for individuals who have received their full RRIF minimum before March 24, 2020.

 

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