Minimum RRIF and variable benefit account withdrawals reduced for 2020
On March 25, 2020, Parliament passed Bill C-13, the COVID-19 Emergency Response Act (Bill C-13), which introduces a number of measures to address the coronavirus disease (COVID-19) pandemic.
Bill C-13 reduces the minimum withdrawal requirements applicable to registered retirement income funds (RRIFs) in 2020. The minimum amount that an RRIF account holder is required to withdraw for the year is 75% of the amount that would otherwise be the minimum amount required to be withdrawn from the account for the year.
The change also applies to Life Income Funds (LIFs) and Locked-in Retirement Income Funds (LRIFs).
Bill C-13 also reduces the minimum withdrawal amount for an individual member’s variable benefit account under a defined contribution provision of a pension plan. For 2020, the minimum amount that must be withdrawn from a variable benefit account is 75% of what the amount would have otherwise been for the year.