My friend has been a US resident since 2005, formerly Canadian. He had an RRSP from his former Canadian life. He has turned 71 and the RRSP has turned into a RRIF. The issue is, he does not need to withdraw from the RRIF to finance his lifestyle and wonders why he should withdraw the minimum distribution at all. He does not file a tax return in Canada , so how can Canada Revenue Agency penalize him for failing to withdraw minimun? Can CRA "raid" the RRIF assets inside the Canadian financial institution? Althernatively, will the Canadian financial institution "push" the minimum distribution out to the beneficiary, whether he wants it or not?
Also, suppose he continues not to withdraw minimum distribution from RRIF and moves back to Canada in a few years when he is 80 (for example). He then has to file a Canadian tax return. Will CRA penalize him for years in which he failed to withdraw? Or let bygones be bygones for newly returned Canadian resident?
RRI(F minimum distribution for US resident
Moderator: Mark T Serbinski CA CPA
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worryfreeinvestor
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No doubt the RRIF trustee will force the minimum, and withhold 15% tax, much in the same way they forced the conversion to a RRIF.
That is why they are known as trustees. they are entrusted by the Govt to carry out the interests of BOTH the govt and the beneficiary.
If the trustee does not do it on its own, no doubt, in short order, CRA will advise the trustee and beneficiary to do it.
That is why they are known as trustees. they are entrusted by the Govt to carry out the interests of BOTH the govt and the beneficiary.
If the trustee does not do it on its own, no doubt, in short order, CRA will advise the trustee and beneficiary to do it.
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