RRIF minimums in a locked GIC | Page 2 | RRSPs and RRIFs | Discussion forum

The current RRIF mandatory withdrawal at Oaken .

The GIC with the lowest interest rate.

If the interest rate is the same between 2 or more GICs, funds will be withdrawn first from the GIC with the shortest term.

If the interest rate is the same between 2 or more GICs, and 2 or more GICs also have the same term, funds will be withdrawn first from the GIC with the lower account number.

Note: Given the new account numbering format (7-digit), the payment will be withdrawn from the old format (18-digit) first.

Please note that RIF payment calculations will remain the same.

Hmmmm all from an existing GIC……

Hubert is similar.

And even though I have cash in my RRIF HISA … my mandatory payment was taken from a GIC at a lower % rate than my HISA.

AltaRed said
The OP is waiting on an answer from NB. It matters not what Oaken or any other FI does.  

Correct.

But some of your general remarks about mandatory payments and the recipients responsibilities are incorrect.

GIC-Fanatic said

Correct.

But some of your general remarks about mandatory payments and the recipients responsibilities are incorrect.  

No, they are not albeit you may be correct with banks and CUs. Discount brokerages require individuals to take on the responsibility for ensuring cash is available to be withdrawn, and/or another holding (GIC, stock, bond, etc.) can be sold or withdrawn in kind.

I have asked in the past at two brokerages I do business with and they have simply told me the responsibility is absolutely mine to make sure I have enough available to meet the mandatory withdrawal. They refused to say what happens if I was stubborn but anecdotally I have heard from others in forums that the brokerage will have to withdraw something out to meet their regulatory obligation and charge an agent assisted commission for doing so.

I was asking that question because, in my absence, both my spouse and my ex would not likely remember to make something available to meet withdrawal requirements and I wanted to know what the consequences are.

We have beaten this subject to death.

Norman1:

RetirEd said
I will confirm that the financial institution must remove at least the minimum requirement (which increases every year) from an existing GIC without penalty.

I left out what I expected would be assumed from our RRIF context here...

the financial institution must remove at least the minimum requirement (which increases every year) from an existing RRIF GIC without penalty.

And you are certainly correct that not all RRSP sellers offer RRIFs. I will add that I am not talking about brokerages when I refer to Financial Institutions here.

NCC1701Z: That's what I heard from everyone I reached.

GIC-Fanatic: Right - for EXTRA RRIF withdrawals, not for mandatory minimums.