Oaken RRIF withdrawals. | Oaken Financial | Discussion forum

Oaken has changed their rules on the "MINIMUM" RRIF withdrawals.

Minimum RIF payments
Currently, to fulfill your RIF minimum payment requirement, we first withdraw the accrued interest and then the principal (if needed) from the GIC(s) held within the plan. Starting July 5, the RIF minimum payment will be withdrawn from the funds available within the GIC(s). If there are multiple GICs within your plan, funds will be withdrawn in the following order:
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If the interest rate is the same between 2 or more GICs, funds will be withdrawn first from the GIC with the shortest term.
If the interest rate is the same between 2 or more GICs, and 2 or more GICs also have the same term, funds will be withdrawn first from the GIC with the lower account number. Note: Given the new account numbering format (7-digit), the payment will be withdrawn from the old format (18-digit) first.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.

I am just planning my next years "MINIMUM" withdrawals. I narrowed it down to 2 GIC's, same rate, same term, and luckily the lower account numbered one was the lower amount of the 2.

So I called Oaken twice...first bozo was clueless and very difficult to understand and speak clearly, but I did press 1 for English. For me, it has been and huge hit and miss to ask questions about RRIF or RRSP for the past few years.

So making it simple.
I have a $4000 GIC and my 2023 payment is $3200. So my question was, what happens to the $800 left? As I was thinking that they would not want to let you have an $800 GIC and I may be forced to take it all (which would be ok) or they would skip this GIC and target the higher amount GIC. The answer is ..... the existing GIC will continue at the same rate till maturity with the $800 balance. In other words a GIC with $800 left in it is ok....BUT if you buy and new one it must be for at least $1000. This is probably standard procedure but my first time experiencing it. And if I wanted it all, I would have to send in a letter of direction to do so.

And just to add. That is why I have Hubert with RRIF money as well. As once the mandatory minimums are taken from Oaken I top up my needs for the year from my Hubert RRIF Savings account.

Hoping to help any one else that may have the same question or situation.