HFI Financial

Keith L. Hatton, CFP, CLU, ChFC, TEP

• The Minimum RRIF withdrawals percent of fund balance:
  

   

  Age on January 1	Set up before January 1, 1993	Set up after December 31, 1992	Age on January 1	Set up before January 1, 1993	Set up after December 31, 1992
  55	2.86	2.86	75	6.67	7.85
  56	2.94	2.94	76	7.14	7.99
  57	3.03	3.03	77	7.69	8.15
  58	3.13	3.13	78	8.33	8.33
  59	3.23	3.23	79	8.53	8.53
  60	3.33	3.33	80	8.75	8.75
  61	3.45	3.45	81	8.99	8.99
  62	3.57	3.57	82	9.27	9.27
  63	3.70	3.70	83	9.58	9.58
  64	3.85	3.85	84	9.93	9.93
  65	4.00	4.00	85	10.33	10.33
  66	4.17	4.17	86	10.79	10.79
  67	4.35	4.35	87	11.33	11.33
  68	4.55	4.55	88	11.96	11.96
  69	4.76	4.76	89	12.71	12.71
  70	5.00	5.00	90	13.62	13.62
  71	5.26	7.38	91	14.73	14.73
  72	5.56	7.48	92	16.12	16.12
  73	5.88	7.59	93	17.92	17.92
  74	6.25	7.71	94+	20.00	20.00

 

HOW RIFF's WORK

Minimum Annual Income

The minimum annual income in the year of purchase is zero. The minimum annual income for the forthcoming year is based on the January 1^st fund balance.

As a result of a change in RRIF (also LIF and LRIF) legislation, the minimum payment rules have been altered. RRIFs, LIFs and LRIFs purchased in 1993 and future years must follow the 1993 minimum income rules. Additional transfers in to an existing RRIF, LIF or LRIF that was purchased prior to 1993 will force the existing RRIF, LIF or LRIF to follow the new minimum income rules. RRIFs, LIFs or LRIFs purchased prior to 1993 will continue to follow pre-1993 minimum income rules as long as no new money is added to them. RRIFs, LIFs or LRIFs purchased under the old rules must convert to the new minimum income rules when the owner turns 78.

Minimum Annual Payment

Defined as a % of the January 1^st Fund Balance

 

Age at start of year	Pre-1993 Contracts	1993+ Contracts
69	4.76%	4.76%*
70	5.00	5.00*
71	5.26	7.38
72	5.56	7.48
73	5.88	7.59
74	6.25	7.71
75	6.67	7.85
76	7.14	7.99
77	7.69	8.15
78	8.33**	8.33
79	8.53	8.53
80	8.75	8.75
81***	8.99	8.99
82	9.27	9.27
83	9.58	9.58
84	9.93	9.93
85	10.33	10.33
86	10.79	10.79
87	11.33	11.33
88	11.96	11.96
89	12.71	12.71
90	13.62	13.62
91	14.73	14.73
92	16.12	16.12
93	17.92	17.92
94-100	20.00	20.00

 

*Prior to age 71, the Minimum Payment % is determined according to the old rules.

**Upon the attainment of age 78, all RRIF, LIF, and LRIF holders must follow the new minimum payment rules.

***The minimum’s after age 80 apply for RRIFs and LRIFs only as LIF holders must convert to an annuity in the calender year that they turn age 80.

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Copyright © 1996-2008 Hatton Financial Inc.

Last modified: December 14, 2008