| Age | Min Rate | On $500,000.00 |
|---|---|---|
| 65 | 4.0% | $20,000.00 |
| 70 | 5.0% | $25,000.00 |
| 71 | 5.3% | $26,400.00 |
| 72 (you) | 5.4% | $27,000.00 |
| 75 | 5.8% | $29,100.00 |
| 80 | 6.8% | $34,100.00 |
| 85 | 8.5% | $42,550.00 |
| 90 | 11.9% | $59,600.00 |
| 94 | 18.8% | $93,950.00 |
| 95 | 20.0% | $100,000.00 |
| Age | Start Balance | Min Rate | Withdrawal | End Balance |
|---|---|---|---|---|
| 72 | $500,000.00 | 5.4% | -$27,000.00 | $496,650.00 |
| 73 | $496,650.00 | 5.5% | -$27,464.75 | $492,644.52 |
| 74 | $492,644.52 | 5.7% | -$27,932.94 | $487,947.15 |
| 75 | $487,947.15 | 5.8% | -$28,398.52 | $482,526.06 |
| 76 | $482,526.06 | 6.0% | -$28,855.06 | $476,354.55 |
| 77 | $476,354.55 | 6.2% | -$29,391.08 | $469,311.65 |
| 78 | $469,311.65 | 6.4% | -$29,848.22 | $461,436.60 |
| 79 | $461,436.60 | 6.6% | -$30,362.53 | $452,627.77 |
| 80 | $452,627.77 | 6.8% | -$30,869.21 | $442,846.49 |
| 81 | $442,846.49 | 7.1% | -$31,353.53 | $432,067.61 |
Common questions about RRIF withdrawals and taxation
You must convert your RRSP to a RRIF (or purchase an annuity or withdraw the full balance) by December 31 of the year you turn 71. If you do not, CRA will tax the full RRSP balance as income. Minimum withdrawals begin the year after conversion. You can convert earlier if you wish to start receiving income before age 71. You can also have multiple RRIFs.
The minimum withdrawal is based on your age (or your spouse's age if younger) on January 1st of each year and the balance of your RRIF at the start of the year. For ages 65-70, the formula is 1/(90-age). Starting at age 71, prescribed percentages increase annually (e.g., 5.28% at 71, 5.40% at 72, up to 20% at age 95+). You can choose to use your younger spouse's age, which results in lower minimum withdrawals.
The minimum annual withdrawal has no withholding tax. For amounts above the minimum: withdrawals up to $5,000 have 10% withheld, $5,001-$15,000 have 20% withheld, and over $15,000 have 30% withheld. Quebec residents face slightly different rates with additional provincial withholding. The actual tax owing is determined when you file your annual return -- withholding is just an estimate.
If you are 65 or older, you can split up to 50% of eligible pension income (including RRIF withdrawals) with your spouse or common-law partner on your tax returns. This is done by filing Form T1032. Pension splitting can significantly reduce the couple's total tax bill by moving income from the higher-income spouse to the lower-income spouse, taking advantage of the lower marginal tax rate.
The federal pension income amount provides a non-refundable tax credit on up to $2,000 of eligible pension income (including RRIF withdrawals if age 65+). This equates to a federal credit of $300 (15% of $2,000). Most provinces also offer a corresponding provincial credit. If you split pension income, the recipient spouse can also claim the pension income amount on their share.
Yes, you can withdraw any amount up to your full RRIF balance. However, amounts above the minimum are subject to withholding tax at source and will increase your taxable income for the year. Excessive withdrawals may also trigger OAS clawback if your total income exceeds approximately $91,000. Consider your overall tax situation and whether larger withdrawals might push you into a higher tax bracket.
If your spouse is the designated beneficiary, the RRIF can be transferred to their RRIF or RRSP on a tax-deferred basis. If a financially dependent child or grandchild is the beneficiary, the funds can be transferred to their RDSP, RRSP, or used to purchase an annuity (with conditions). Otherwise, the full fair market value of the RRIF is included in your income on your final tax return, which can result in significant tax.
The rate of return on your RRIF investments directly impacts how long your funds will last. With minimum withdrawals and a 5% return, a $500,000 RRIF at age 72 might last well into your 90s. A higher return rate extends the fund's life, while lower returns or larger-than-minimum withdrawals deplete it faster. Conservative investment strategies may be appropriate as you age to protect against market downturns.
CRA-Aligned: This calculator uses official CRA RRIF minimum withdrawal rates and tax rates for 2025. Projections assume constant rates of return and do not account for inflation. Consult a financial advisor for retirement planning advice.
How Registered Retirement Income Fund withdrawals work
What is a RRIF?
A Registered Retirement Income Fund (RRIF) is a retirement income vehicle that holds the proceeds of your RRSP after you convert it. You must convert your RRSP to a RRIF, annuity, or lump sum by December 31 of the year you turn 71. A RRIF provides regular income payments while your remaining savings continue to grow tax-sheltered inside the fund.
What is the minimum RRIF withdrawal?
Each year, you must withdraw at least a minimum percentage of your RRIF balance. The minimum starts at 5.28% at age 71 and increases each year, reaching 6.82% at age 80, 8.99% at age 85, and 20% at age 95 and older. If your RRIF is worth $300,000 at age 72, the minimum withdrawal is 5.40%, or $16,200 for the year.
Are RRIF withdrawals taxable?
Yes. RRIF withdrawals are fully taxable as income, just like salary or pension income. Your financial institution withholds tax on amounts exceeding the minimum: 10% on amounts up to $5,000, 20% on $5,001 to $15,000, and 30% on amounts over $15,000 (rates are higher in Quebec). The minimum withdrawal has no withholding tax, but you still owe tax at filing time.
Can you withdraw more than the minimum?
Yes. You can withdraw any amount up to the full balance, but amounts above the minimum are subject to withholding tax. Larger withdrawals can push you into a higher tax bracket and may trigger OAS clawback if your income exceeds $90,997. It is important to plan withdrawals carefully to minimise the overall tax impact.
Can you use your spouse's age for the minimum?
Yes. When you set up your RRIF, you can elect to use your younger spouse's age to calculate the minimum withdrawal. This results in a lower minimum and lets more money stay sheltered in the RRIF longer. This election is irrevocable once the RRIF is established, so choose carefully. It can be especially valuable if there is a large age gap.
What is pension income splitting with a RRIF?
If you are 65 or older, RRIF withdrawals qualify as eligible pension income. This means you can split up to 50% of your RRIF income with your spouse, potentially lowering the combined tax bill. RRIF income also qualifies for the $2,000 pension income tax credit, which saves about $300 in federal tax. These benefits make RRIFs more tax-efficient than lump-sum RRSP withdrawals.
What happens to a RRIF when you die?
If your spouse is the successor annuitant, the RRIF transfers to them tax-free and continues paying out. If your spouse is the beneficiary (but not successor annuitant), the RRIF value can be transferred to their own RRSP or RRIF. If someone other than your spouse inherits, the entire RRIF balance is included in your final tax return as income, which can result in a substantial tax bill.
CRA-Aligned: Based on 2025 CRA rates and thresholds. For personal advice, speak to a qualified accountant or tax professional.
Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms
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