ALDA Quote | Advanced Life Deferred Annuity Quote

The Government of Canada amended the tax rules on January 1st 2020 to allow Canadians to purchase an Advanced Life Deferred Annuity (ALDA) using certain registered savings plans. As of December 2023, Desjardins Financial became the first life insurance company in Canada to offer ALDA's. At Life Annuities.com, we are now able to sell ALDA's to Canadians.

The Advanced Life Deferred Annuity (ALDA) serves as a tax-efficient solution for individuals seeking to postpone the taxation of their registered savings (such as RRSP, RRIF and DPSP) until the latest possible moment. This is the only product in Canada that defers the commencement of payments from registered funds until the end of the year in which the annuitant reaches the age of 85.

To acquire an ALDA, individuals must use unlocked registered funds. For those transferring funds from an RRSP, the transfer must occur before December 31 of the year in which the annuitant turns 71. A transfer from a RRIF can take place until the age of 80. This strategic timing helps avoid mandatory minimum withdrawals on this portion of the capital between the annuitant's 72nd and 84th birthdays.

The payment amount for the ALDA is established at the time of annuity purchase and remains unaffected by market fluctuations. It's important to note that all payments received in a given year are subject to taxation for the annuitant.