Bill C-301 aims to amend the Income Tax Act and the Income Tax Conventions Interpretation Act regarding Registered Retirement Income Funds (RRIFs). The main change is to remove the requirement for individuals to withdraw a minimum amount from their RRIF each year. This means that individuals with RRIFs would have the option to decide how much to withdraw each year, instead of being forced to take out a certain amount. The bill also updates the definition of "retirement income fund" and makes related changes to ensure the smooth transfer of funds between different RRIF carriers, as well as changes related to income calculations in specific situations. These changes would come into effect in the taxation year following the year in which the bill receives royal assent.
Taxation
This bill amends the Income Tax Act by removing the mandatory minimum withdrawal amounts from Registered Retirement Income Funds (RRIFs). This could affect the amount of taxable income individuals report each year, as they will have more control over the amount they withdraw from their RRIF. The bill also makes related amendments to the Income Tax Conventions Interpretation Act.