Calculate your minimum Registered Retirement Income Fund (RRIF) withdrawal based on your age and account balance.
Based on CRA prescribed RRIF factors (example)
This calculator computes the minimum withdrawal required from a Registered Retirement Income Fund (RRIF) for the year, based on your account balance at the start of the year and your age, using the CRA's prescribed minimum withdrawal factors - plus a projection of how your balance and withdrawals might evolve over the following years.
The CRA publishes a prescribed minimum withdrawal factor (a percentage) for each age starting at 71. Your minimum withdrawal for the year is simply your account balance at the start of the year multiplied by the factor for your age. The projection then assumes the remaining balance grows at your expected return rate over the rest of the year, and repeats the calculation for each subsequent age and factor.
Formula: Minimum Withdrawal = Account Balance × (RRIF Factor for Your Age ÷ 100). For the projection, each year: Withdrawal = Balance × Factor; remaining Balance = (Balance − Withdrawal) × (1 + Expected Return Rate); repeat with the next age's factor.
Example: A CA$500,000 RRIF balance at age 72 uses a factor of 5.40%, giving a minimum withdrawal of CA$27,000 for the year. (Note: factors shown are illustrative examples of the type the CRA publishes - always verify the current official factor table for the applicable tax year.) If the remaining balance then grows at an expected 5% annual return (example rate — enter your expected rate), the following year's balance would be about CA$496,650, with a minimum withdrawal of roughly CA$27,465 at age 73's 5.53% factor.
A Registered Retirement Income Fund is what most RRSPs convert into to provide retirement income - by the end of the year you turn 71, your RRSP must be converted to a RRIF (or an annuity, or withdrawn as a lump sum, which would be fully taxed immediately). Starting the year after the RRIF is opened, you must withdraw at least the CRA's prescribed minimum amount each year, which increases as a percentage of your balance as you age - reflecting an assumption that the fund should be drawn down over your remaining life expectancy. There's no maximum withdrawal limit (unlike a Life Income Fund, which does have a maximum), so you can withdraw more than the minimum if you need the income, though all RRIF withdrawals are fully taxable in the year received. Withholding tax is applied to withdrawals above the minimum amount, but not to the minimum amount itself (the minimum withdrawal is still taxable when you file - withholding just isn't deducted at source for it). RRIF withdrawals can also be split with a spouse for tax purposes if you're 65 or older, and qualify for the pension income tax credit. Some retirees also use a younger spouse's age to calculate the RRIF factor (which results in lower minimum withdrawals), an option available when the RRIF is set up.
You must start taking withdrawals the year after your RRIF is established. Since RRSPs must be converted to a RRIF (or annuity) by the end of the year you turn 71, most people start their first RRIF withdrawal in the year they turn 72, though you can open a RRIF earlier if you choose.
No, there's no maximum withdrawal limit for a RRIF (unlike a Life Income Fund, which has both a minimum and a maximum). You can withdraw as much as you want from a RRIF, but any amount above the minimum is subject to withholding tax at the time of withdrawal, and all withdrawals are taxable income.
Generally, no withholding tax is deducted from the minimum required withdrawal amount itself, though it's still fully taxable when you file your return. Any amount withdrawn above the minimum is subject to withholding tax at source, with the rate depending on the excess amount withdrawn.
Yes - when you set up your RRIF, you can elect to base the minimum withdrawal factor on your younger spouse's or common-law partner's age instead of your own, which results in a lower minimum withdrawal percentage and allows the fund to be drawn down more slowly. This election is generally made when the RRIF is established and may not be changeable afterward.
RRIF withdrawals count as taxable income, which is included when determining whether your income exceeds the OAS clawback (recovery tax) threshold. Large RRIF withdrawals, especially if combined with other income, could trigger a partial or full clawback of OAS benefits - see our OAS Calculator for more on how OAS clawback works.
Generally no - once an RRSP is converted to a RRIF, it cannot be converted back, and you must continue taking at least the minimum withdrawal each year going forward. This is one reason the timing of RRSP-to-RRIF conversion is worth planning carefully, especially if you don't need the income immediately.
Disclaimer: The information, rates, and factors provided on this page are for educational and illustrative purposes only and do not constitute financial or tax advice. The RRIF minimum withdrawal factors shown are illustrative examples of the type published by the CRA and may not reflect the current official table - always verify the current factors for the applicable tax year with the CRA or a qualified financial adviser. The expected return rate used in the projection is an example only and does not represent a guaranteed return.