Federal Economic and Fiscal Statement
Minister of Finance Jim Flaherty presented the Economic and Fiscal Statement of the federal government this afternoon. Measures are proposed to offer temporary relief to seniors with registered retirement investment funds (RRIFs) and to private pension funds affected by global financial market turbulence.
The government also proposes to reduce the required minimum withdrawal amount for RRIFs by 25% for 2008. Similar rules will apply to people receiving variable benefit payments under a money purchase registered pension plan.
Last week, the Minister of Finance sent an open letter to federally regulated financial institutions about minimum withdrawal requirements for RRIFs. The letter asks that financial institutions take measures to ensure that their clients are able to use in-kind asset transfers, at no cost, rather than selling assets to meet minimum withdrawal requirements. Further, it asks institutions to ensure that all clients with RRIFs are informed of this option. (Click Here..)
(Chartered accountants based in Mississauga and Etobicoke)