If you withdrew income from your RRIF in 2008, you can choose to re-contribute up to 25% of your 2008 minimum with full deduction for the tax year. This is a great idea if you don’t need the income and want to maintain your investment values. You only have until the end of this month, so if you want to take advantage of this get in touch with us right away!
From the CRA Notice (emphasis mine):
The main proposed changes are the following:
- The minimum amount that must be withdrawn from RRIFs will be reduced by 25% for 2008. For example, if the 2008 minimum amount would have been $10,000, the reduced minimum amount will be $7,500.
- Individuals who have already withdrawn more than the reduced 2008 minimum amount, based on the existing law, will be permitted to re-contribute to their RRIFs an amount up to the 25% proposed reduction. The re-contribution will be deductible for the 2008 taxation year.
- Individuals who opt to make a re-contribution can do this up to March 1, 2009, or 30 days after the proposed legislative changes are enacted by Parliament, whichever is later.