Understanding the government's retirement income rules
Calculation of your minimum annual RIF withdrawal is based on your age or your spouse's age (as of January 1st of the current calendar year) and the value of the RIF at the previous year's end. If your spouse is younger, consider using your spouse's age. This will result in a lower minimum withdrawal, allowing more of your capital to grow in a tax-deferred environment.
The schedule provided tells you how much your minimum RIF withdrawal will be as a percentage of the previous year-end RIF balance.
For example -- if your or your spouse's age is 65 and the value of your RIF is $100,000, the minimum amount required to be withdrawn is:
$100,000 X 0.04 = $4,000
In the example above, the remaining $96,000 continues to grow tax-deferred within your RIF, even though you withdrew some income.
For help in setting your retirement goals and understanding your retirement income options, feel free to visit any TD Canada Trust branch or call 1-800-560-6377 any time for more information.
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