FAQ: Why is the Platform Not Pulling from My RRSP/RRIF to Cover a Shortfall?

If you find that your net worth charts has a RRSP/RRIF amount but is also creating a deficit (example shown below) there are two most likely causes.

1. First, if you have a RRSP override the platform will do exactly what that override says (unless it gets “capped” by contribution room or withdrawal limits).

   If this is the case, go to Planning > Projections > Table and open up the RRSP contribution/withdrawal using the “>” arrow. If the values are Red until age 95 then that’s the cause. Remove the override and recalculate the plan.

   

   
   

2. Second, the use of an RRSP Meltdown AI Strategy may be 'capping' the amount being pulled from the RRSP. Setting an RRSP Meltdown Strategy means that the platform will not pull more than the amount needed to reach the target tax bracket even if more funds are needed.

   You can test to see if this is the case by deactivating any RRSP meltdown to see if that fixes the problem. If it does, consider using a larger RRSP meltdown strategy that helps cover the shortfall.