Economic Statement - Proposed Measure for Annuitants of Registered Retirement Income Funds: Questions and Answers for Financial Institutions

1. Will financial institutions be required to reprogram their systems for 2008 to report, in boxes 16 and 24 of the T4RIF slip, the excess amount based on the proposed 25% reduction of the 2008 registered retirement income fund (RRIF) minimum amount?
2. Are there any changes to the RRIF withholding tax rules?
3. An individual received the reduced minimum amount in 2008 based upon the proposed change. Will financial institutions be required to issue amended T4RIF slips for 2008 if the proposed changes are not passed into law?
4. If an individual received an unreduced minimum amount in 2008, and re contributed an amount up to the 25% minimum amount reduction, is the financial institution required to issue a separate RRIF receipt for the re contributed amount?
5. Are financial institutions required to issue an official registered retirement savings plan (RRSP) receipt if an individual contributes to his or her RRSP an amount up to the 25% minimum amount reduction where the individual was paid the unreduced minimum amount in 2008?

1. Will financial institutions be required to reprogram their systems for 2008 to report, in boxes 16 and 24 of the T4RIF slip, the excess amount based on the proposed 25% reduction of the 2008 registered retirement income fund (RRIF) minimum amount?

No. The Canada Revenue Agency (CRA) will not require any changes to existing reporting requirements. This means that the excess amount reported in box 24 of the T4RIF slip should continue to be based on the unreduced minimum amount for 2008. This is consistent with the approach adopted for the 2007 Budget measure that provided a waiver of the minimum amount in 2007 and 2008 for certain individuals. For more details, go to www.cra.gc.ca/tx/rgstrd/bdgt2007-eng.html#T4RIF.

For information about how to report other RRIF amounts on T4RIF slips, refer to Guide T4079, T4RSP and T4RIF Guide, on our Web site at www.cra.gc.ca/forms or call 1-800-959-5525.

2. Are there any changes to the RRIF withholding tax rules?

No. The exemption from withholding tax on RRIF withdrawals up to the minimum amount will continue to be based on the unreduced minimum amount for 2008.

3. An individual received the reduced minimum amount in 2008 based upon the proposed change. Will financial institutions be required to issue amended T4RIF slips for 2008 if the proposed changes are not passed into law?

No. Financial institutions will not be required to issue amended T4RIF slips for 2008 if the proposed changes are not passed into law. However, the taxpayer may be required to withdraw the ineligible amount from his or her RRIF and report the amount as income in 2009. 

4. If an individual received an unreduced minimum amount in 2008, and re‑contributed an amount up to the 25% minimum amount reduction, is the financial institution required to issue a separate RRIF receipt for the re‑contributed amount?

Yes. A separate RRIF re-contribution receipt should be issued. The receipt should show that the amount received was a contribution to a RRIF. In addition, the receipt should include:

• the name of the RRIF carrier;
• the signature of an authorized official;
• the contract number;
• the annuitant's name and social insurance number;
• the total amount received; and
• the date the amount was received.

Receipts that bear a facsimile signature of an authorized official, without countersigning or initialling, are acceptable if the receipts are serial-numbered and your company retains a copy of each receipt issued.

Financial institutions are not required to provide copies of these RRIF receipts to the CRA. Further, these RRIF contributions must not form part of the records included in the RRSP Contribution Information Return for any year. 

5. Are financial institutions required to issue an official registered retirement savings plan (RRSP) receipt if an individual contributes to his or her RRSP an amount up to the 25% minimum amount reduction where the individual was paid the unreduced minimum amount in 2008?

Yes. Official RRSP receipts are to be issued for these RRSP contributions. The contributions have to form part of the records you include with the 2008 RRSP Contribution Information Return you have to file electronically by May 1, 2009. Information about this return is available on our Web site at http://www.cra.gc.ca/tx/bsnss/tpcs/slps/fnncl/rrsp-reer.