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Phil, need some advice,

As you know I rolled my RRIF over to XXXXXXX, saving some 8/9000 year in fees.  My US broker will monitor it for me for a small fee and I will than do the buy sell as required,

Here,s where it gets interesting. Shortly before or during the move XXXXXX transferred about 5700.  to my account in Canada, saying that they had to pay out the balance of the RRIF payments for the year. So I assume that I cannot draw anymore till January/2015. ??? if I do I am told the withholding would jump to 25% from 15%.

During my years with XXXXXX I was able to draw on occasion a little extra at the 15% rate because I was always taking out the minimum.  What is the window where you can take out a little more and not have the tax rate jump to 25%, there must be one as over the years on occasion I have taken a little more than the minimum.  Not that I intend to but want to know the rules.

we are also doing some home improvements and thought I would top off the drawings a little but informed by XXXX that the tax rate would be 25% ,  True ??

I also assume that I need to write XXXXXX to set up the drawings for 2015, ?? or will that be done automatically.

any advice for me

You will need to turn on your clock for this one I,m sure




In order to be eligible for the 15% non-resident withholding under the treaty you’ll need to meet some criteria. Essentially you’ll be eligible for the 15% withholding rate if your RRIF payments for the year are not  greater than the greater of the 2 amounts below:

  • Twice the amount of the minimum payment for the year
  • 10% of the FMV of the RRIF at the beginning of the year

I’m guessing (not sure though) that the greater of the above will be 10% of the RRIF at the beginning of the year. So, for example, if your RRIF was $600,000 at the beginning of the year = $60,000 and if the minimum payments were $40,000 = x 2 =$80,000. Therefore you should (based on those figures) be able to withdraw $80,000 at 15%. Anything in excess of this will be at 25%.

Please let me know if the above makes sense.



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Owen Villa
Owen Villa
4 years ago

Hi Phil,

How do you calculate minimum payment for the year for a RRIP?



Jill Minnick
Jill Minnick
6 years ago

Hi. Moved to the US 20 years ago leaving in Canada about $32,000 in a RRIF. in Dec. 2016 I had them withdraw $20,000. Due to getting divorce I was in need of money. So my question is: is there any way of recouping the $5,000 that was withheld? Thank You

Philip Hogan

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The information contained in this article is for general use only and should not be viewed as professional advice. Accounting and tax rules and regulations regularly change and individuals should contact a competent professional to obtain accounting and tax advice based on their specific situation.


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