On November 27, 2008, the Federal Government introduce a measure to provide relief to seniors with RRIF who suffer losses due to the market meltdown. Seniors would get a 25-per-cent reduction in the minimum amount of money they must withdraw from their registered retirement income funds (RRIF) for 2008. The problem is that it is an administration nightmare for investment companies to make changes to their systems in time.
“All is not lost for seniors if their bank or investment dealer can’t accommodate a reduced RRIF withdrawal for 2008. People who make the full withdrawal for this year will have the opportunity to put 25 per cent of the amount back into their RRIFs until March 1, 2009, or 30 days after the government’s RRIF measure is passed into law.” reported Rob Carrick in the Globe & Mail this morning.
To make things easier, you may simply want to take your minimum annual payment (MAP) in kind. Therefore, you would not sell the investment but have it transfered to your non-registered account instead of taking it in cash. This would ensure that you do not suffer a permanent loss on your investment. Just let us know if you want to take advantage of these measures. We will figure out what is best for you.