Trevor Marsh,
CA, CFP
Financial
Advisor
As
appeared in The Business Link Niagara
November 1, 2007
QUESTION
I am 70 years
old. How do the new RRIF rules (introduced in the 2007 Federal Budget)
extending the RRSP maturity deadline by two years affect me?
ANSWER
You can
convert your RRIF back to an RRSP and provided you have contribution room,
continue making RRSP contributions until the end of the year in which you turn
71. Similarly contributions to a spousal RRSP can continue until the end of the
year that your spouse turns 71. If you are 70 or 71 and choose not to convert
your RRIF back to an RRSP, the minimum withdrawal requirement is waived for
2007 and 2008. You should contact your financial advisor and request to cancel
your RRIF withdrawal for those years.
Individuals
who are receiving a registered plan annuity will be permitted to have the annuity
amended (with no tax consequences) to reflect the later conversion age. In
addition, employers will be allowed to amend their RPPs to allow benefits to
accrue and contributions made in respect of employed members who are 71 years
of age or younger at the end of 2007, subject to certain conditions.
Assante
Capital Management Ltd. (Member
CIPF)
E-mail: tmarsh@assante.com
Tel:
905-641-6654 ∙Toll
Free: 866-434-9292