CRA discusses required recognition of RRIF minimum amount in post-terminal year of transfer of RRIF to surviving spouse

The deceased, who died in November, bequeathed his RRIF to his surviving spouse, to whom it was transferred in the subsequent year. In 2016-0651711C6 F, CRA indicated that even if the deceased had withdrawn the minimum amount before his death, the amount which could be transferred free of tax was reduced by the minimum amount for the subsequent year under the s. 146.3(6.11) formula.

In this regard, CRA has now indicated that the minimum amount for that subsequent year respecting the RRIF of the deceased would be the age that the deceased would have attained on January 1 of the subsequent year (assuming no election had been made for the prescribed factor under Regs. 7308 (3) and (4) to be based instead on the age of the spouse).

CRA also indicated, in the situation where the death had occurred before the deceased could withdraw the minimum amount for the year of death, but the transfer of his RRIF to the surviving spouse was not made until the following calendar year, then there was no need for the RRIF issuer to pay the minimum amount for the year of death – but that the eligible amount received by the surviving spouse in the subsequent year would be reduced by the minimum amount for that year.

Neal Armstrong. Summary of 11 October 2019 APFF Financial Strategies and Instruments Roundtable, Q. 8 under s. 146.3(6.11).