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Email this11:57 am
December 18, 2024
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Hi, just new here. I stumbled onto this great site a month or so ago.
Not sure if I should post here or in the RRIF RRSP section.
But is about Oaken.
Over the years I have found that Oaken will post, 12 months ahead of time, what my next RRIF payment will be. And the payment, in the past, has been that same number.
Then I have to ask how can that number be true, if I do another withdrawal or if I reinvest a GIC and a higher or lower rate during that year?
As the year ends I have printed my RRIF Accounts and find that the Fair Market Value goes up every day. So I assume today's numbers are "year end". And if I assign my age percentage the payment is about $60 short.
I don't think I will contact Oaken as am not interested in receiving a revised RRIF Tslip. And since I will take more out and it's all taxable anyways I won't pursue.
Does any one see the same issue?
Today is the day to check.
3:21 pm
April 6, 2013
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GIC-Fanatic said
Over the years I have found that Oaken will post, 12 months ahead of time, what my next RRIF payment will be. And the payment, in the past, has been that same number.
Then I have to ask how can that number be true, if I do another withdrawal or if I reinvest a GIC and a higher or lower rate during that year?
…
Those things don't matter. The minimum withdrawal for a RRIF, defined in Income Tax Act 146.3 (1), for a year is calculated with the fair market value of RRIF at the start of the year, not with the RRIF's value at the end of the year.
7:40 pm
December 18, 2024
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Minimum amount from a RRIF
As the carrier of a RRIF, you have to pay a minimum amount to the annuitant every year after the year in which the RRIF is set up. You calculate this amount by multiplying the fair market value (FMV) of the property held in the RRIF at the start of the year by a prescribed factor.
Just to clarify.
Jan 1 2025 FMV times the percentage rate is the payment for 2025 or 2026? Thanks.
10:17 pm
April 6, 2013
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FMV at the start of January 1, 2025 multiplied by the prescribed factor is the minimum RRIF withdrawal for 2025.
Note that it is FMV at the start of January 1, 2025 and not FMV at the end of January 1, 2025. So, it is the FMV at January 1, 2025 00:00:00, not at January 1, 2025 23:59:59. The FMV effectively used is the FMV at the end of the day December 31, 2024.
10:31 am
September 11, 2013
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Makes it easy, people know on the first day of the year what their minimum withdrawal amount is for that year, they have 365 days left to make it happen.
1:19 pm
December 18, 2024
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Ok. Jan 1 2025 has solved it.
My RIF payment is in January.
The stated "Next Payment" amount on my Oaken RIF account is now correct based on today's FMV.
But going back to Feb 2024 the "Next Payment" says Jan xx 2025 and the 2024 amount remains. Would be clearer if the amount says TBD or says already paid out or??
Thanks for your responses.
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