Where do I find the annual minimum for an account?
- View your client’s profile
- Navigate to the Withdrawals page
- Select the desired account from the “From” drop-down. You’ll see the annual minimum (See screenshot below).
You will also find information here if a client is not set to reach their annual minimum in withdrawals prior to the end of the year. This includes withdrawals to date and any future withdrawals scheduled until December 31st of that year.
For LIF accounts, both the annual minimum and maximum will be surfaced here (see the screenshot below).
How do I set up a new perpetually recurring withdrawal schedule for my client?
- View your clients profile.
- Navigate to the Withdrawals page.
- To adjust your clients existing withdrawals, click “Cancel all” in the withdrawal banner.
Once that is complete, the new withdrawal you set up will be on the new schedule and your instructions will carry into perpetuity as long as the frequency of monthly, quarterly, (assuming you have chosen “Ongoing” from the “Scheduled Until” drop-down) or yearly is chosen. As soon as possible and future date withdrawals will not carry forward.
Can I set a one-time future day payment for the annual minimum?
No. In order to set an annual minimum, select “Yearly” as the frequency and the desired annual withdrawal date.
What if my client receives their withdrawal in early January? Will you know the new annual minimum by then?
Great question! We will not have the new annual minimum calculated by then. As a result, you will see a warning that we will be using the previous year’s annual minimum amount.
If a client is withdrawing the annual minimum (each month on the 1st) we will use the previous year’s annual minimum to calculate the January 1st payment. For the remaining subsequent months (i.e. February to December) we will pay: (the new annual minimum — January withdrawal amount) / 11. The same logic applies to quarterly withdrawals.
If a client is withdrawing the annual minimum (each year on January 1) we will use the previous year’s annual minimum to calculate the payment. The client will then either have to withdraw slightly more (if the amount paid out was less than the annual minimum) or the client will pay withholding tax on the amount that was paid out above the minimum.
On a LIF account, what if my client selects “Other” and the amount is greater than their annual maximum?
If a client chooses "other" and it's greater than their maximum, we will cap it at the maximum (this is only applicable for a LIF) because we cannot send more than the maximum on a LIF account. If a client chooses "Other" and the amount is greater than the minimum, we will send the "other" amount and charge applicable withholding tax.
Can I set a specified amount of withholding tax to be paid out?
Yes. You can enter a dollar amount for the withholding tax amount and this will be applied to each payment (e.g. $50 withheld on every monthly payment). We do not yet have the ability to enter a percentage withholding tax.