On November 27th, the Government released draft legislation that, when in force, will reduce 2008 annual minimum RRIF payments by 25%. RRIF annuitants will have until March 1, 2009 to re-contribute the 25% back to the RRIF and receive an offsetting deduction on their 2008 Income Tax Return. The proposal to decrease the 2008 annual minimum amount by 25% will not affect withholding tax calculations, spousal attribution rules, non-resident withholding taxes and RRIF annuitant age of 70 in 2007. This proposed legislation comes into force upon Royal Assent. If Royal Assent is granted after January 30, 2009, re-contribution made within 30 days of Royal Assent will be deemed to have been made on March 1, 2009.
This proposed legislation is not yet in force but we will let you know when it is!
