Once you convert your RRSP to a RRIF, the federal government requires you to withdraw a minimum amount each year. These mandatory withdrawals are set by a percentage schedule tied to your age. Understanding the rules — and how to plan around them — can save thousands of dollars in taxes over your retirement.
A Registered Retirement Income Fund (RRIF) is designed to gradually pay out your retirement savings over your lifetime. To ensure funds are drawn down and taxed, the government mandates minimum annual withdrawals based on your age and the value of your RRIF at the start of each calendar year.
All RRIF withdrawals are fully taxable as ordinary income in the year taken.
| Age | Minimum Withdrawal % |
|---|---|
| 65 | 4.00% |
| 66 | 4.17% |
| 67 | 4.35% |
| 68 | 4.55% |
| 69 | 4.76% |
| 70 | 5.00% |
| 71 | 5.28% |
| 72 | 5.40% |
| 73 | 5.53% |
| 74 | 5.67% |
| 75 | 5.82% |
| 76 | 5.98% |
| 77 | 6.17% |
| 78 | 6.36% |
| 79 | 6.58% |
| 80 | 6.82% |
| 85 | 8.51% |
| 90 | 11.92% |
| 94+ | 20.00% |
Multiply your RRIF balance on January 1 by the rate for your age that year. For example, if your RRIF is worth $500,000 on January 1 and you are 75, your minimum withdrawal is $500,000 x 5.82% = $29,100.
You can withdraw more than the minimum at any time, but never less. Amounts above the minimum have withholding tax deducted at source.
When you set up your RRIF, you can elect to base minimum withdrawals on your spouse's or common-law partner's age — if they are younger than you. This reduces your mandatory minimum each year, helping to preserve the RRIF balance and lower your annual taxable income. This election must be made when the RRIF is established and cannot be changed later.
No minimum withdrawal is required in the year you establish your RRIF. Minimums begin the following calendar year. This provides a small planning window when you first convert at 71.
RRIF withdrawals are included in your net income and taxed at your marginal rate. Withdrawals can also push you above the OAS clawback threshold ($93,000) or reduce GIS eligibility. Planning the timing and size of withdrawals relative to other income sources is critical.
One strategy is to take RRIF withdrawals and reinvest the after-tax proceeds into your TFSA (if you have contribution room). This shifts assets from a taxable vehicle (RRIF) to a tax-free one (TFSA), reducing future mandatory income and improving flexibility for estate planning.
KOHO offers free banking with no monthly fees — no minimum balance, no age restrictions. Use code 45ET55JSYA for a bonus.
Open KOHO Free — No Fees — Code 45ET55JSYA