RRIFs – Tips and Tricks, Separating Fact from Fiction


The Globe and Mail recently published a very helpful guide to mandatory RRIF withdrawals that separates fact from fiction. It contains some very useful tips and a helpful breakdown of exactly how the mandatory withdrawals work with regards to taxation, you’ll also find that it contains information that will help you use the rules to full advantage. Did you know that you don’t have to sell any shares and that if your spouse is younger you can use their age to determine the minimum withdrawal while still satisfying the requirements? The following is an excerpt:

If you don’t need to spend your RRIF income, you don’t necessarily have to sell anything in order to meet the minimum withdrawal requirement. Instead, you can transfer shares “in-kind” from your RRIF to a non-registered account. That way, you’ll maintain ownership of the shares and avoiding trading costs.

Many RRIF holders are not aware of this option. In fact, several years ago, then finance minister Jim Flaherty wrote an open letter to financial institutions ensuring that all of them accommodate in-kind transfers at no cost to clients.

“A common misconception is that seniors must sell assets to satisfy RRIF withdrawal requirements,” Mr. Flaherty said in the 2008 letter. “The income tax rules permit ‘in-kind’ asset transfers to meet the minimum withdrawal requirements – they do not require the sale of assets.”

We highly recommend you read the full article. It was published by Globe and Mail on June 28th, 2014. To see this article and other related articles on their website, please click here