Personal Finance

RRIF withdrawal mistake mistake by iScotia?

  • Last Updated:
  • Feb 16th, 2021 8:57 am
[OP]
Sr. Member
Aug 25, 2005
600 posts
33 upvotes
Mississauga

RRIF withdrawal mistake mistake by iScotia?

My minimum RRIF withdrawal percentage based on my age is 4.76%. Scotia paid me the RRIF amount which works out to 4.756%. This is a small percentage difference but will I get into trouble with CRA for withdrawing less than the minimum even by a small % and $ amount?
I called iScotia but was on hold for hours and then disconnected. Also sent them email with no response in the two weeks since email sent.
12 replies
Member
May 24, 2018
403 posts
258 upvotes
Ontario
How much is the percentage translate into? If 2021, is it possible to follow thru with a 2nd withdraw DIY? ... perhaps they'll allow another reduction for 2021 (like 2020) ... it is not worth to stay on the phone for hours over this ... if Scotiabank did this to everybody, then you're not alone. Somebody else will get thru to them.


[Re-visited 2021-Feb-17] Would there be a penalty if, for whatever reason, the minimum withdrawal amount is not meet ? ... my blind spot
Last edited by hwyc2007 on Feb 17th, 2021 8:21 pm, edited 4 times in total.
[OP]
Sr. Member
Aug 25, 2005
600 posts
33 upvotes
Mississauga
Actually the difference in $ is under $10. I can do a partial withdrawal of that amount
Deal Addict
Mar 3, 2018
1858 posts
1842 upvotes
GTA
Do you have a spouse. Because they can use her age to calculate your RRIF % withdrawal amount.
[OP]
Sr. Member
Aug 25, 2005
600 posts
33 upvotes
Mississauga
The above used my spouse age and the error is based on her age withdrawal % of 4.76 versus 4.756%
Deal Addict
Jan 19, 2017
4093 posts
2328 upvotes
fhirji wrote: My minimum RRIF withdrawal percentage based on my age is 4.76%. Scotia paid me the RRIF amount which works out to 4.756%. This is a small percentage difference but will I get into trouble with CRA for withdrawing less than the minimum even by a small % and $ amount?
I called iScotia but was on hold for hours and then disconnected. Also sent them email with no response in the two weeks since email sent.
If you are talking about 2020, then you are ok: https://www.canada.ca/en/revenue-agency ... -rrif.html
Deal Addict
User avatar
Jul 29, 2013
1305 posts
938 upvotes
ml88888888 wrote: If you are talking about 2020, then you are ok: https://www.canada.ca/en/revenue-agency ... -rrif.html
As ml88888888 said, there was a 25% reduction rate if requested, for 2020 because of the initial drop in the stock market because of the pandemic.
Also, really 4.756% rounded down mathematically is 4.76% so I would not get my tail in a knot over it.
CRA has bigger fish to catch.
Deal Fanatic
Jul 1, 2007
8468 posts
1539 upvotes
This thread is comical.

OP, you have nothing to worry about.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
[OP]
Sr. Member
Aug 25, 2005
600 posts
33 upvotes
Mississauga
My payment is for 2021 and so the 25% reduction does not apply
Deal Addict
Jan 19, 2017
4093 posts
2328 upvotes
fhirji wrote: My minimum RRIF withdrawal percentage based on my age is 4.76%. Scotia paid me the RRIF amount which works out to 4.756%. This is a small percentage difference but will I get into trouble with CRA for withdrawing less than the minimum even by a small % and $ amount?
I called iScotia but was on hold for hours and then disconnected. Also sent them email with no response in the two weeks since email sent.
Since the formula is 1/(90 − X) where x is your age, the exact % is 0.047619 or 4.7619%. So both 4.76% and 4.756% are incorrect if you want it to be exact. May be you used a different year end market value of your RRIF acct, compared to the market value Scotia used. Did you ask Scotia what market value they used to calculate your withdrawl?
[OP]
Sr. Member
Aug 25, 2005
600 posts
33 upvotes
Mississauga
ml88888888 wrote: Since the formula is 1/(90 − X) where x is your age, the exact % is 0.047619 or 4.7619%. So both 4.76% and 4.756% are incorrect if you want it to be exact. May be you used a different year end market value of your RRIF acct, compared to the market value Scotia used. Did you ask Scotia what market value they used to calculate your withdrawal?
I will call IScotia again with the formula applied to my wife's age and ask what market value they used although I do have the year end statement since I believe they should use the value of the account on the last day of the previous year
Deal Addict
Mar 3, 2018
1858 posts
1842 upvotes
GTA
fhirji wrote: I will call IScotia again with the formula applied to my wife's age and ask what market value they used although I do have the year end statement since I believe they should use the value of the account on the last day of the previous year
Scotia is allowed to use your wife's age for your RRIF withdrawal % per CRA. You must have elected this option maybe unintentionally when you set up your own RRIF. Many husbands choose that option as the wife is usually younger so a lower % withdrawal is applied.
[OP]
Sr. Member
Aug 25, 2005
600 posts
33 upvotes
Mississauga
DaveTheDude wrote: Scotia is allowed to use your wife's age for your RRIF withdrawal % per CRA. You must have elected this option maybe unintentionally when you set up your own RRIF. Many husbands choose that option as the wife is usually younger so a lower % withdrawal is applied.
I had chosen my wife's age to be used - all above are based on her age - only issue is that the factor is not exact 4.76% - they used 4.756% - a small difference in dollars and %

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