Example – Calculating the minimum amount


In 2010, Alex owned an RRSP that contained a locked-in annuity as well as other property. In December 2009, before his RRSP matured, he set up a trusteed RRIF and transferred all the property from his RRSP. The fair market value (FMV) of the other property at the start of January 2013 is $75,000 and the locked-in annuity pays $5,000 annually. Alex had no spouse or common-law partner when the RRIF was being set up and is 73 years old at the start of 2013. The carrier calculates the minimum amount for 2013 as follows:

Step 1: Multiply the FMV of all the property held by the RRIF at the beginning of the year, excluding any locked-in annuity contracts ($75,000) by the applicable prescribed factor (0.0759)

Step 2: Add periodic payments to be paid from all locked-in annuity contracts held at the start of the year ($5,000)

The carrier determines that the minimum amount for the year is $10,692 ($5,692 + $5,000)


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