Certified Financial Planner (CFP) Practice Exam · Question
Maria, 70, has a RRIF with a balance of $300,000 on December 31, 2022. What was her minimum RRIF withdrawal for 2023, based on the prescribed minimum withdrawal factors from the Income Tax Act?
For age 70, the prescribed minimum withdrawal factor is 1/22, or approximately 4.545%. The minimum withdrawal is calculated as the RRIF balance at the end of th
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Question: Maria, 70, has a RRIF with a balance of $300,000 on December 31, 2022. What was her minimum RRIF withdrawal for 2023, based on the prescribed minimum withdrawal factors from the Income Tax Act?
Answer options:
- $10,200
- $12,750 ✅ $13,636
- $15,000
Correct answer: $13,636
Explanation: For age 70, the prescribed minimum withdrawal factor is 1/22, or approximately 4.545%. The minimum withdrawal is calculated as the RRIF balance at the end of the previous year ($300,000) multiplied by this factor. So, $300,000 * (1/22) = $13,636.36, which rounds to $13,636. This demonstrates the required distribution from a RRIF.
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