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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Changes in the rules for RRIFs have reduced the amount that is required to be withdrawn from a RRIF for individuals over age 70.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are also rules, including those that are age related, that are used to determine the minimum amount that has to be withdrawn from a defined contribution pension plan or a Pooled Registered Pension Plan.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  • These factors are also used to determine the minimum amount to be withdrawn from a defined contribution pension plan and Pooled Registered Pension Plan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.

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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.

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pro-tip

Pro Tip

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.