March 19, 2019 – Federal Government Permits Deferral on Withdrawal of Some Registered Savings to Age 85

by | Mar 19, 2019 | Industry Updates

Historically, Registered Retirement Income Funds (RRIFs) require minimum withdrawals to begin at age 71. If the budget is approved, Seniors will be able to purchase an advanced life deferred annuity (ALDA) to defer withdrawal of a portion of their savings to age 85. There are several conditions including: lifetime limit of 25% of the value of any registered plan and a lifetime limit from all qualifying plans of $150,000 indexed to inflation and rounded to the nearest $10,000.

The amount in the ALDA will not be included in the calculation of the minimum RRIF withdrawal. ALDAs will be available in the 2020 tax year under the following plans: RRSP, RRIF, deferred profit sharing plan, pooled registered pension plan and definied contribution pension plan.

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