I suppose if you have only GICs in a RRIF it's a given it's a declining asset, but in my case my RRIF FMV is higher than the day I opened it a few years ago. We'll see how long that goes on for. From what I can tell TDDI is as happy to have my RRIF business as for my other accounts with them, they've been very helpful whenever I've called them about withdrawal options. Now I know the drill so I don't anticipate needing to ever call them again about that account.

No problem with withdrawals after this date at Hubert. Have done it several times. After dealing with innumerable FIs during our RSP years we have settled on Hubert for remaining RIF. It's by far the easiest one to deal with. No surprises or convoluted rules. You will come to appreciate this simplicity as you drift towards the sunset, trust me!.

The definition in Income Tax Act subsection 146.3(1) says the minimum must be taken each year:

retirement income fund means an arrangement between a carrier and an annuitant under which, in consideration for the transfer to the carrier of property, the carrier undertakes to pay amounts to the annuitant (and, where the annuitant so elects, to the annuitant’s spouse or common-law partner after the annuitant’s death), the total of which is, in each year in which the minimum amount under the arrangement for the year is greater than nil, not less than the minimum amount under the arrangement for that year, but the amount of any such payment does not exceed the value of the property held in connection with the arrangement immediately before the time of the payment. (fonds de revenu de retraite)

December 31 is still part of the year. So, one could withdraw all or the remaining part of the annual RRIF minimum for a year as late as December 31.

That's right. Feed RRIF account holders a made-up 15-day requirement from CRA to cover up their one-person RRIF processing department booking the last two weeks of December off each year!

All financial institutions are compelled bylaw to make minimum RRIF withdrawals, regardless of any lock-ins. They should follow your instructions or, of you didn't leave any, use their policy. Cracking the lowest-interest ones is best for the client, but I don't know if they all do it that way. My first withdrawal was last year, and went like clockwork.

NOTE: CRA says one must make them more than 15 days before or after year-end. So I use December 15.

NorthernRaven said

I was wandering around Oaken's site the other day, and I noticed that for RRIFs, they will extract your minimum payment requirement from the GIC(s) value without requiring they be cashed in or deregistered.

So you don't need loose cash, or timed GIC maturities. They do it in a customer-friendly fashion, starting with the lowest rate GIC, and shortest remaining duration as a tie-breaker. I'm (fortunately) not at RIF age yet myself, so I'm not sure how other institutions handle cases of non-liquid assets like GICs when it comes time to make the minimum payment.  

At Hubert, they will withdraw your annual RIF mandatory amounts from the locked-in term deposit that has the lowest interest rate. You can also withdraw extra RIF funds at any time from locked-in terms with no fees or penalties.

christinad said
I thought i read somewhere it's better to redeem your GICs at the end of the year when withdrawing from your RRIF. Is this correct or does the time matter? I was also debating buying the GIC in July and December. Not sure if i need twice a year though? Also I have a 5 year ladder. Is a three year ladder better? I haven't entered retirement age yet, just doing some planning. I'd have to rejig my GICs if it was better to buy at the beginning of the year.  

I was wandering around Oaken's site the other day, and I noticed that for RRIFs, they will extract your minimum payment requirement from the GIC(s) value without requiring they be cashed in or deregistered.

So you don't need loose cash, or timed GIC maturities. They do it in a customer-friendly fashion, starting with the lowest rate GIC, and shortest remaining duration as a tie-breaker. I'm (fortunately) not at RIF age yet myself, so I'm not sure how other institutions handle cases of non-liquid assets like GICs when it comes time to make the minimum payment.

christinad said
Thanks, that's a good point. I wondered why the end of year was suggested.  

More tax deferment provided none of the withdrawal amount was not needed earlier in the year. Doesn't matter what type of asset, i.e. GIC, stock, bond, etc.

There is a bit more tax-deferred interest in the RRIF if one withdraws the money from the RRIF near the end of the year than withdrawing earlier in the year and earning interest on the money in a non-registered account.

I check those rates regularly ... they fluctuate ⬆️&⬇️ quite often.

Check back again next week.

Dean

hwyc said
Found rates delightfully competitive

1Y 3.29%
2Y 3.65%
3Y 3.83%  

Noticed this last week, as I was late with TFSA contributions this year, and looking around for best GIC Options; easy decision to pump $7K for both wife and myself into that 3yr term.