2009 Budget - Questions and Answers

Changes for 2008 to the Calculation of the Registered Retirement Income Fund (RRIF) Minimum Amount

• What are the changes?
• What date is to be included on official receipts issued by financial institutions for re-contributions made after March 1, 2009, and up to April 14, 2009?
• If the re-contribution is made to an RRSP, do the same rules apply?
• Do the RRSP contributions referred to above form part of the records a financial institution must include in the 2008 RRSP Contribution Information Return that has to be filed electronically by May 1, 2009?

What are the changes?

The main changes are the following:

• The minimum amount that had to be withdrawn from RRIFs for 2008 was reduced by 25%. For example, if the 2008 minimum amount was $10,000, the reduced minimum amount is $7,500.
• Individuals who withdrew more than the reduced minimum amount can re contribute to their RRIFs an amount up to the 25% reduction. The re-contribution can be deducted for 2008 only.
• The re-contribution has to be made no later than 30 days after the legislative changes were enacted by Parliament. Bill C-10, which included these changes, was enacted by Parliament on March 12, 2009. Accordingly, an individual who received the 2008 unreduced minimum amount, and who has not already made their re-contribution has up to April 14, 2009 to do so.

What date is to be included on official receipts issued by financial institutions for re-contributions made after March 1, 2009, and up to April 14, 2009?

Financial institutions are to indicate that the contribution date is March 1, 2009.

If the re-contribution is made to an RRSP, do the same rules apply?

Yes. The same rules apply if the re-contribution is made to an RRSP after March 1, 2009, and up to April 14, 2009. The official RRSP receipts issued for these contributions must indicate that the contribution date is March 1, 2009.

Do the RRSP contributions referred to above form part of the records a financial institution must include in the 2008 RRSP Contribution Information Return that has to be filed electronically by May 1, 2009?

Yes. These contributions form part of those records. These contributions must not be included in the records included in the 2009 RRSP Contribution Information Return. If official RRSP receipts are issued for 2008 after the 2008 RRSP Contribution Information Return is filed with the CRA, amendments to that return must be filed. Please see the information at http://www.cra-arc.gc.ca/esrvc-srvce/rf/menu-eng.html for details about filing information returns electronically and filing amendments to those returns.