Enter your current age, RRIF balance, and expected return to see mandatory minimum withdrawals projected through age 100.
The federal government sets mandatory minimum withdrawal percentages applied to the RRIF balance at the beginning of each calendar year (January 1).
| Age | Minimum % | Age | Minimum % | Age | Minimum % |
|---|---|---|---|---|---|
| 55 | 2.86% | 68 | 4.55% | 82 | 7.38% |
| 60 | 3.33% | 69 | 4.76% | 84 | 8.08% |
| 65 | 4.00% | 70 | 5.00% | 85 | 8.51% |
| 66 | 4.17% | 71 | 5.28% | 88 | 10.21% |
| 67 | 4.35% | 75 | 5.82% | 90 | 11.92% |
| — | — | 80 | 6.82% | 95+ | 20.00% |
The minimum withdrawal for each calendar year equals:
Minimum Withdrawal = RRIF Balance on January 1 × Minimum Percentage for Your Age
Note: The percentage is based on your age (or your spouse's age if you elected to use their age) on January 1 of the calendar year. If you turn 72 in August, your minimum for that year is based on age 72.
Example: A 75-year-old with a $300,000 RRIF balance on January 1 must withdraw at least: $300,000 × 5.82% = $17,460 during that calendar year.
If the RRIF earned 6% during the year and the balance grew to $318,000 before the withdrawal, the minimum is still based on the January 1 balance ($300,000), not the current balance.
When you establish your RRIF, you can elect to base minimum withdrawals on your younger spouse's or common-law partner's age. This produces lower mandatory withdrawals because the formula uses a younger age with a lower percentage.
Example: You're 75 (5.82% rate) but your spouse is 70 (5.00% rate). Using your spouse's age saves 0.82% on each dollar — on a $400,000 RRIF, that's $3,280 less mandatory income per year. Less income means lower taxes and potentially reduced OAS clawback.
When you receive RRIF payments, your financial institution withholds income tax based on the excess of the withdrawal over the minimum:
Withholding is not the final tax — it's a prepayment. Your actual tax owing is calculated on your annual tax return based on your total income. If too little was withheld, you'll owe the difference. If too much was withheld, you get a refund.
Consider taking more than the minimum in years when your other income is low — for example, before CPP or OAS starts, or in a year when investment income was minimal. This proactively drains the RRIF at lower tax rates before forced minimums push you into higher brackets.
If you don't need your RRIF minimum for living expenses, deposit it directly into your TFSA (up to your annual limit). You pay tax on the RRIF withdrawal, but the TFSA grows tax-free and future withdrawals won't affect income-tested benefits.
Instead of selling RRIF investments to generate cash, you can transfer investments "in kind" directly from your RRIF to a non-registered account. The fair market value of the transferred investments counts as your RRIF withdrawal for tax purposes, but you avoid triggering unnecessary trading.
Failing to withdraw at least the minimum from your RRIF in a calendar year results in a penalty tax of 1% per month (Part X.1 Tax) on the shortfall. The CRA can waive this penalty in cases of genuine error if you rectify the situation promptly.
If you realize you've missed a withdrawal, contact your financial institution immediately to take the catch-up withdrawal and then apply to the CRA for penalty waiver using Form T1-OVP.
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