knowledge topics
RRIF Withdrawals
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define types of withdrawals from a Registered Retirement Income Fund.
- Annual minimum prescribed amount
- Excess amounts
- Identify the parties whose age may determine the prescribed annual minimum withdrawal amount for a Registered Retirement Income Fund.1
- Identify when the first prescribed annual minimum withdrawal amount from a Registered Retirement Income Fund must start.1
- Identify factors used to calculate the prescribed annual minimum withdrawal amount from a Registered Retirement Income Fund.1
- Calculate the prescribed annual minimum withdrawal amount (in dollars) for a Registered Retirement Income Fund.1
- For a qualifying Registered Retirement Income Fund where the annuitant is under age 79 as of January 1
- For a qualifying Registered Retirement Income Fund where the annuitant is age 79 or older as of January 1
- For a non-qualifying Registered Retirement Income Fund where the annuitant is under age 71 as of January 1
- For a non-qualifying Registered Retirement Income Fund where the annuitant is age 71 or older as of January 1
- Identify who may request a withdrawal from a Registered Retirement Income Fund.
- For a personal Registered Retirement Income Fund
- For a spousal Registered Retirement Income Fund
- Explain the income attribution rules related to withdrawals from a spousal Registered Retirement Income Fund.2
- Who the income is attributed to
- Who is responsible for the tax on the withdrawal
- The timing of the withdrawal
- Explain the circumstances when the attribution rules for the withdrawal of funds from a spousal Registered Retirement Income Fund will not apply.2
- Explain when taxes must be withheld on amounts withdrawn from a Registered Retirement Income Fund.3
- Explain the tax impact of receiving a withdrawal from a personal Registered Retirement Income Fund.
- Annual minimum prescribed amount
- Excess amounts
- Explain the tax impact of receiving a withdrawal from a spousal Registered Retirement Income Fund.
- Annual minimum prescribed amount
- Excess amounts
- Attribution rules
- Identify the current withholding tax rates for excess amounts withdrawn from a Registered Retirement Income Fund.3
- Explain how each of the factors may impact the suitability of withdrawing from a Registered Retirement Income Fund, such as:
- Tax impact
- Loss of asset growth within Registered Retirement Income Fund
- Potential impact on government benefits
- Evaluate how each of the factors may impact the suitability of withdrawing from a Registered Retirement Income Fund.
- Calculate the withholding tax for a cash withdrawal from a Registered Retirement Income Fund.
- For a personal Registered Retirement Income Fund
- For a spousal Registered Retirement Income Fund
- Estimate the tax impact resulting from a cash withdrawal Registered Retirement Income Fund.
- For a personal Registered Retirement Income Fund
- For a spousal Registered Retirement Income Fund
- Explain how taxes payable on a cash withdrawal from a Registered Retirement Income Fund may differ from the withholding taxes collected by a financial institution.
- Calculate the impact on current and projected net worth of a withdrawal from a Registered Retirement Income Fund.
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
REFERENCES
- http://www.cra-arc.gc.ca/E/pub/tp/ic78-18r6/ic78-18r6-e.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/wthdrwls/spsl-eng.html
- https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/registered-retirement-savings-plans-registered-retirement-income-funds-rrsps-rrifs/registered-retirement-savings-plans-registered-retirement-income-funds-rrsps-rrifs.html#wthhldng
