RRIF Minimum Withdrawal Calculator

RRIF Minimum Withdrawals: What Canadians Need to Know

A Registered Retirement Income Fund (RRIF) is the primary vehicle for drawing retirement income from your RRSP savings. By law, you must convert your RRSP to a RRIF (or purchase an annuity) by December 31 of the year you turn 71. Once converted, you are required to withdraw at least a prescribed minimum amount each year. This minimum is expressed as a percentage of your RRIF balance on January 1, and it increases with age — from 5.28% at age 71 to 20% at age 95 and beyond.

All RRIF withdrawals are taxable as ordinary income in the year received. Your financial institution will withhold tax on amounts above the annual minimum: 10% on amounts up to $5,000, 20% on $5,001–$15,000, and 30% on amounts over $15,000 (rates differ in Quebec). The minimum withdrawal itself has no withholding at source, but you will still owe tax when you file your return. You can base the minimum withdrawal on your younger spouse’s age, which produces a lower percentage and helps preserve the account longer.

Selected RRIF Minimum Withdrawal Rates

A key consideration for RRIF planning is managing your overall tax bracket. Large RRIF withdrawals can push you into a higher marginal rate and trigger the OAS clawback. Many advisors recommend starting withdrawals before age 72 — sometimes called a “meltdown strategy” — to draw down the RRSP/RRIF earlier at lower tax rates. You can withdraw more than the minimum at any time, and you can hold a diversified portfolio inside a RRIF just as you would in an RRSP. The investments continue to grow tax-sheltered; only the amounts you withdraw are taxed.