RRIF Withdrawal Calculator
| Age | Balance at Beginning of Year | Minimum Withdrawal Percentage | Minimum Withdrawal Amount | Balance at End of Year |
| 71 | $500,000 | 5.28% | $26,400 | $497,280 |
| 72 | $497,280 | 5.4% | $26,853 | $493,948 |
| 73 | $493,948 | 5.53% | $27,315 | $489,965 |
| 74 | $489,965 | 5.67% | $27,781 | $485,293 |
| 75 | $485,293 | 5.82% | $28,244 | $479,901 |
| 76 | $479,901 | 5.98% | $28,698 | $473,763 |
| 77 | $473,763 | 6.17% | $29,231 | $466,759 |
| 78 | $466,759 | 6.36% | $29,686 | $458,926 |
| 79 | $458,926 | 6.58% | $30,197 | $450,165 |
| 80 | $450,165 | 6.82% | $30,701 | $440,437 |
| 81 | $440,437 | 7.08% | $31,183 | $429,717 |
| 82 | $429,717 | 7.38% | $31,713 | $417,904 |
| 83 | $417,904 | 7.71% | $32,220 | $404,968 |
| 84 | $404,968 | 8.08% | $32,721 | $390,859 |
| 85 | $390,859 | 8.51% | $33,262 | $375,477 |
| 86 | $375,477 | 8.99% | $33,755 | $358,807 |
| 87 | $358,807 | 9.55% | $34,266 | $340,768 |
| 88 | $340,768 | 10.21% | $34,792 | $321,275 |
| 89 | $321,275 | 10.99% | $35,308 | $300,265 |
| 90 | $300,265 | 11.92% | $35,792 | $277,697 |
| 91 | $277,697 | 13.06% | $36,267 | $253,501 |
| 92 | $253,501 | 14.49% | $36,732 | $227,607 |
| 93 | $227,607 | 16.34% | $37,191 | $199,937 |
| 94 | $199,937 | 18.79% | $37,568 | $170,487 |
| 95 | $170,487 | 20% | $34,097 | $143,209 |
| 96 | $143,209 | 20% | $28,642 | $120,296 |
| 97 | $120,296 | 20% | $24,059 | $101,049 |
| 98 | $101,049 | 20% | $20,210 | $84,881 |
| 99 | $84,881 | 20% | $16,976 | $71,300 |
| 100 | $71,300 | 20% | $14,260 | $59,892 |
| 101 | $59,892 | 20% | $11,978 | $50,309 |
| 102 | $50,309 | 20% | $10,062 | $42,260 |
| 103 | $42,260 | 20% | $8,452 | $35,498 |
| 104 | $35,498 | 20% | $7,100 | $29,818 |
| 105 | $29,818 | 20% | $5,964 | $25,048 |
About this calculator:
- This calculator assumes that your RRIF does not come under the “Pre-March 1986” or “Qualifying RRIFs” category of prescribed factors.
- The calculator assumes that Interest is compounded annually.
- You can start an RRIF at any age, however, the minimum age requirement of this calculator is 50 years.
- The withdrawal is assumed to be made at the beginning of the year and the interest is assumed to be added at the end of the year.
What You Should Know
- RRSP can be converted to RRIF to provide income in retirement.
- There is no age limit to opening an RRIF.
- An RRIF can only be funded through an RRSP, a PRPP, an RPP, an SPP or another RRIF
- The earnings of an RRSP are not taxed, however, the payouts are treated as normal income and are taxed accordingly.
- A minimum annual withdrawal is required to be made from the second year of the RRIF, however, there is no maximum limit for withdrawal.
What is a Registered Retirement Income Fund (RRIF)?
In Canada, senior citizens are supported by Old Age Security (OAS) payments as well as Canada Pension Plan (CPP) payments. OAS payments depend on how long the recipient has lived in Canada, while CPP payments depend on a person's contribution to CPP. Very few might be satisfied with their living standard with an income composed of CPP and OAS payments. Therefore, most people need to save for their retirement. The Government has created a tax deferral vehicle called an RRSP to facilitate personal saving for retirement. But people can not keep their RRSP beyond their 70.
Registered Retirement Income Fund (RRIF) is a plan that is designed to provide an income to Canadians in their retirement. As a common practice, RRSP (Registered Retirement Savings Plan) holders convert their RRSP fund into an RRIF to provide them a stable retirement income. This can be done at any age, however, it is mandatory to transfer all of your RRSP funds to a retirement income option by the last day of the calendar year in which you turn 71.
Similar to RRSP, RRIFs also offer a multitude of investment options such as Guaranteed Investment Certificates (GICs), Mutual Funds, Exchange Traded Funds (ETF), Bonds, Stocks and more. You can choose to open an RRIF account with a carrier of your choice. A carrier can be an insurance company, a bank, a trust company or any licensed financial organization, and the account holder is called an annuitant. Like in an RRSP, the earnings in an RRIF are also not taxed; however, the RRIF payouts are considered as the annuitant’s, normal income and attract an income tax accordingly. However, as opposed to an RRSP, you cannot make any contributions to an RRIF, you can only fund an RRIF with your RRSP, PRPP (Pooled Registered Pension Plan), RPP (Registered Pension Plan), SPP (Specified Pension Plan) or another RRIF.
Minimum Withdrawal Requirement
You are exempt from a minimum withdrawal requirement in the year that you establish an RRIF; however, the tax law requires you to start withdrawing the minimum withdrawal amount from the second year. This minimum withdrawal requirement is calculated at the beginning of each year on the basis of the market value of RRIF and a prescribed RRIF factor as per your age. You can withdraw more than the minimum required amount but not less than that. The table below shows the prescribed RRIF factors for ages 70 to 95.
| Age | Minimum Withdrawal Factor |
|---|---|
| 70 | 0.05 |
| 71 | 0.0528 |
| 72 | 0.054 |
| 73 | 0.0553 |
| 74 | 0.0567 |
| 75 | 0.0582 |
| 76 | 0.0598 |
| 77 | 0.0617 |
| 78 | 0.0636 |
| 79 | 0.0658 |
| 80 | 0.0682 |
| 81 | 0.0708 |
| 82 | 0.0738 |
| Age | Minimum Withdrawal Factor |
|---|---|
| 83 | 0.0771 |
| 84 | 0.0808 |
| 85 | 0.0851 |
| 86 | 0.0899 |
| 87 | 0.0955 |
| 88 | 0.1021 |
| 89 | 0.1099 |
| 90 | 0.1192 |
| 91 | 0.1306 |
| 92 | 0.1449 |
| 93 | 0.1634 |
| 94 | 0.1879 |
| 95 and above | 0.2 |
Note: For ages below 70 years use formula 1/(90-age) to calculate the RRIF factor.
For Example: If you have $200,000 in your RRIF at the age of 80, your minimum withdrawal for that year would be:
Market Value of RRIF x Prescribed RRIF Factor for age 80
=$200,000 x 0.0682
=$13,640
This means that you must withdraw a minimum of $13,640 in the year that you turn 80.
You can also opt to use your spouse or common-law partner’s age to calculate the minimum withdrawal amount. If your spouse is younger than you, doing so can lower the minimum withdrawal requirement. If you wish to do so, you must inform your carrier at the time of setting up your RRIF.
If the annuitant withdraws an amount which is in excess of the minimum annual requirement, it is subject to a tax deducted at source which is determined using lump-sum withholding rates as specified below:
- 10% (5% for Quebec) on amounts up to $5,000
- 20% (10% for Quebec) on amounts over $5,000
- 30% (15% for Quebec) on amounts over $15,000
What happens when an RRIF annuitant dies?
When an RRSP annuitant dies, the balance in their RRIF can be transferred directly or indirectly to the RRSP, RRIF, PRPP or SPP of the qualified beneficiary, or to buy an annuity for them. If the deceased annuitant has a financially dependent infirm child or grandchild, the RRIF proceeds can also be rolled over into their RDSP (Registered Disability Savings Plan), even if the deceased annuitant has had a spouse or a common-law partner at the time of their death. However, if the dependent does not qualify as a person with a disability, the funds must be transferred to a term annuity.
A general rule is that when the annuitant dies, they are considered to have received the FMV (Fair Market Value) of the RRIF immediately before their death and that amount must be included on their final tax return. The annuitant’s estate is responsible for paying the income tax. If the value of the RRIF increases between the time of death and the final distributions, the beneficiary has to pay a tax on the increase. The following exemptions apply to the general rule:
- The spouse or common-law partner is named as the successor annuitant in the RRIF contract or the will
In this case, the surviving spouse or common-law partner becomes the new annuitant and the RRIF payouts continue to be paid out to them. All the payouts after the death of the original annuitant are taxed to the new annuitant - An agreement between the estate and the surviving spouse or common-law partner allows for treating the latter as a the successor annuitant
When the surviving spouse or common law partner has not been named as the successor annuitant, where they are entitled to the RRIF under the will; they may still be considered as the successor annuitant if it is consented by the executor of the will and agreed upon by the carrier. - The spouse or common-law partner is designated as the sole beneficiary
When a spouse is named as a sole beneficiary, they may instruct the carrier to transfer the eligible amount, called the designated benefit, from the RRIF to their own registered plan before 31st December of the year following the death. - A qualified beneficiary is named as the beneficiary
This could include the surviving spouse (or common-law partner) or a financially dependent child or grandchild.
Frequently Asked Questions
Can you convert RRSP to RRIF before age 71?
Yes. You can convert RRSP to RRIF at any age, up to the end of the year in which you turn 71. A partial conversion when you turn 65 may also be beneficial as the payouts are considered as eligible pension income and will let you take advantage of the pension tax credits.
Can I have multiple RRIF Accounts?
Yes. You can have more than one RRIF accounts. They can be different kinds of investments and can grow at different rates. You must however ensure that you make the minimum annual withdrawal from each of them.
How is RRIF taxed?
The earnings of an RRIF account are not taxed, however, the payouts are considered normal income and therefore you pay income taxes on them.
What are anti-avoidance rules?
Anti-avoidance rules are the rules applicable to RRSPs and RRIFs in order to prevent aggressive tax planning. Non-qualified investments, advantages and prohibited investments are taxed as per these rules.