2018-0790161M4 RRSP maturation
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Demand to eliminate age 71 requirement to begin drawing down RRSP savings.
Position: Referred to Minister of Finance.
Author:
Podor, Karina
Section:
146(2)(b.4)
January 20, 2019
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your correspondence in which you ask the Canada Revenue Agency (CRA) to eliminate the age limit for registered retirement savings plans (RRSPs) and the minimum withdrawal requirement for registered retirement income funds (RRIFs), which you believe are discriminatory. Thank you also for your understanding regarding the delay of this response.
The Income Tax Act requires that individuals begin withdrawing from their retirement savings in RRSPs, registered pension plans, and other registered retirement plans by the end of the year in which they turn 71 years of age. As a result, individuals are no longer permitted to contribute to these plans or accumulate pension benefits after the end of that year and must begin receiving retirement income out of these plans or transfer their savings into a RRIF or qualifying annuity by the end of that year.
The CRA administers tax laws for the Government of Canada. The Department of Finance Canada is responsible for tax policy and legislative amendments, such as the changes to the RRSP and RRIF programs that you are seeking. Therefore, I am sending a copy of our correspondence to the Honourable Bill Morneau, Minister of Finance, for his consideration.
I appreciate the opportunity to respond to your concerns and trust the information I have provided is helpful.
Sincerely,
The Honourable Diane Lebouthillier
c.c.: The Honourable Bill Morneau, P.C., M.P.
Minister of Finance
House of Commons
Ottawa ON K1A 0A6
Karina Podor
905-721-5206
2018-079016
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