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RRIF Withdrawals

Changes in the rules for RRIFs have reduced the amount that is required to be withdrawn from a RRIF for individuals over age 70. These changes are effective at the start of the 2015 tax year. For persons under the age of 71 the formula of 1/(90-age) remains unchanged. The age used would be the spouse’s age.

There are also rules, including those that are age related, that are used to determine the minimum amount that has to be withdrawn from a defined contribution pension plan or a Pooled Registered Pension Plan.

If RRIF withdrawals are more than the new minimum amounts, at any time in 2015, the amount representing the excess of the old minimum amount less the new minimum amount can be re-contributed before March 1, 2017. Where such amounts are re-contributed, they can be deducted from income in 2016.

  • For those under the age 71 the formula of 1/(90-age) remains unchanged
  • This would be the spouse’s age when using that option
  • These factors are also used to determine the minimum amount to be withdrawn from a defined contribution pension plan and Pooled Registered Pension Plan

If RRIF withdrawals are more than the new minimum amounts at anytime in 2015, the excess of the old minimum amount less the new minimum amount can be re-contributed before March 1, 2017 and deducted from income in 2016.

FAQ’s on Getting a CPA in Hamilton, ON

What is RRIF and what is its purpose?

RRIF stands for Registered Retirement Income Fund, a retirement vehicle in Canada comparable with an annuity. It provides retirees with a continuous source of income from their savings vehicles. A life income fund (LIF) is an RRIF type offered in the country that’s developed to hold locked-in pension funds.

What is the current minimum for an RRIF withdrawal?

Based on the 2021 RRIF minimum withdrawal rate table, the minimum percentage that Canadian seniors must withdraw from their RRIFs yearly is between 2.86% for those aged 55 and 20% for ages 95 and above. Seniors must make withdrawals from their RRIFs before they turn 72.

How often can I make an RRIF withdrawal?

You can make lump sum withdrawals, or you can do them monthly, quarterly, or semi-annually as long as the total amount equals or goes over the minimum amount. However, if you withdraw more than the minimum, you’d have to pay withholding taxes on the excess.

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ACCESSING THE SMALL BUSINESS DEDUCTION IN YOUR BUSINESS

The Small Business Deduction gives businesses a tax deduction on the first $500,000 of income. This saves an eligible corporation around up to $50,000 in income taxes. There are a number of conditions that have to be met to be eligible for this deduction.

Thank you for all your help. Reliable and highly professional firm.
This is an announcement from Aaron Baer, legal counsel to Faris CPA.

I have been working with Faris CPA for more than 10 years.

Faris CPA is being attacked by Kenneth John Weakley (Oct 1969).

I am posting this review because Kenneth John Weakley has been deleting his reviews and has been reposting them, so that Faris CPA's responses don't always show up.

Faris CPA's position is as follows:

Faris CPA is a well-regarded firm that is compliant with CPA Ontario obligations and has a good track record.

Under no circumstances will Faris CPA be paying Kenneth John Weakley any amount.

Kenneth John Weakley's claims do not have any merit.
Response from the owner:Thank you Aaron for your help with this matter. Please see below my entire response to Kenneth John Weakley fake reviews: “Attention all readers: Kenneth John Weakley DOB October 20, 1969 Address: Address: 821A Fulham Road, London, U.K. SW6 5HG ( Title: NGL449634) Faris CPA and 3 other reputable lawyers in the GTA are being aggressively attacked with fake Google reviews posted by Kenneth John Weakley (DOB October 20, 1969). Unfortunately, his repeated blackmailing and extortion attempts in the past few months have failed and he is still hoping to be successful by keep posting those false and fake reviews. Please note all personal information mentioned in our response is available online, publicly available and anyone can access it and none of the information was obtained while doing business with Kenneth John Weakley. Feel free to Google his name and see the below link to confirm. As such, there is no breaching confidentiality issue whatsoever. https://find-and-update.company-information.service.gov.uk/officers/EfbNEs5kNSRQeb9uq8kdZL0LGm8/appointments Based on the above link you will see the following information: This is a fake review posted by Kenneth John Weakley (DOB: October, 20 1969). Address: 821A Fulham Road, London, U.K. SW6 5HG
Had a very good experience with Sam and his team. They dealt with my CRA audit in the most efficient way possible. I admire their professionalism and expertise in providing answers to the CRA and providing a perfectly reconciled package which was a key to resolve the tax issue. If you look for a tax consultant firm, hire Farid CPA. 10 stars
Response from the owner:Thank you for the five stars and the positive review.
I was referred to Sam Faris by a family member who highly recommended him to deal with my CRA audit matter which has been ongoing for almost 2 years. Considering that this was a sensitive issue, I needed to make sure that Sam would be the right fit to handle my case. I requested an in-person meeting. I met with Sam for more than 2 hours. He went through CRA proposal letter and immediately identified the weaknesses in CRA’s calculations. He immediately advised on the best approach to dispute this proposal and provided a time line when he will submit the counter analysis. I was impressed with his confidence and his expertise and decided to retain his services. He worked on my file around the clock to ensure meeting the deadline. At the end, Sam was able to reduce the tax bill and I was able to pay it with no hesitation. While Sam was working on the file, he was in a full control with the situation by communicating with the auditor on timely and professional manners. I never felt that I was left in the dark as Sam was always providing me with an update. I do recommend to hire Sam for any dispute with the CRA. Thanks
Response from the owner:Thank you for your positive reviews and kind words.