Last updated: June 21, 2024
When you have a Registered Retirement Income Fund (RRIF), you must withdraw a minimum amount from it each year. If you don’t withdraw the minimum amount, you may face tax penalties. That’s why it’s important to understand the withdrawal rates and rules of your RRIF.
What are the withdrawal rules for a RRIF?
RRIFs have minimum annual withdrawals based on your age or your spouse or common-law partner’s age and on the account value – both at the beginning of the year. You must continue to take at least these minimum withdrawals until no funds remain. Minimum withdrawals must start in the year after you open your account. There’s no RRIF minimum in the first year you open the RRIF. Keep in mind, you pay tax whenever you take withdrawals from your RRIF.
RRIF minimum withdrawal rates
Review the tables to find what your RRIF minimum withdrawal percentage is. Keep in mind, there’s no RRIF minimum withdrawal required in the first year you open your RRIF.
| Age | RRIF minimum withdrawal % per year |
|---|---|
| 55 | 2.86 |
| 56 | 2.94 |
| 57 | 3.03 |
| 58 | 3.13 |
| 59 | 3.23 |
| Age | RRIF minimum withdrawal % per year |
|---|---|
| 60 | 3.33 |
| 61 | 3.45 |
| 62 | 3.57 |
| 63 | 3.70 |
| 64 | 3.85 |
| 65 | 4.00 |
| 66 | 4.17 |
| 67 | 4.35 |
| 68 | 4.55 |
| 69 | 4.76 |
| Age | RRIF minimum withdrawal % per year |
|---|---|
| 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 |
| Age | RRIF minimum withdrawal % per year |
|---|---|
| 80 | 6.82 |
| 81 | 7.08 |
| 82 | 7.38 |
| 83 | 7.71 |
| 84 | 8.08 |
| 85 | 8.51 |
| 86 | 8.99 |
| 87 | 9.55 |
| 88 | 10.21 |
| 89 | 10.99 |
| Age | RRIF minimum withdrawal % per year |
|---|---|
| 90 | 11.92 |
| 91 | 13.06 |
| 92 | 14.49 |
| 93 | 16.34 |
| 94 | 18.79 |
| 95+ | 20 |
*If you have a RRIF through Sun Life, we calculate your minimum withdrawal dollar amount every year. As you draw down your RRIF savings, the funds in your account will remain tax-deferred.
RRIF maximum withdrawals
There are no maximum withdrawal limits for RRIFs. You can withdraw as much as you want from your account. But keep in mind that you’ll be taxed on any amount you withdraw from your RRIF.
Open a RRIF
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Frequently Asked Questions
How much tax do I pay on RRIF withdrawals?
The amount of tax you pay on every RRIF withdrawal depends on your individual circumstances, including:
- how much other income you received in the year of the withdrawal and
- any tax deductions and tax credits you’re entitled to.
You must include the amount you withdrew from your RRIF as income when you file your tax return.
Your financial institution will take a certain amount of tax from your RRIF and send it to the CRA or Revenu Quebec – this is commonly referred to as a withholding tax.
The amount of withholding tax varies between 10% to 30% of the amount withdrawn above the minimum amount. This applies to most provinces and territories except Quebec where the amount of withholding tax is 5 to 15% federally and 14% provincially.
Keep in mind that the withholding tax may not be your total tax due on the RRIF withdrawal.
Should I take more than the RRIF minimum withdrawal?
Depending on your other taxable income and your individual circumstances, you may want to take more than the RRIF minimum withdrawal amount.
How do I avoid tax on a RRIF?
You can’t avoid paying taxes on RRIF withdrawals. But depending on your overall tax planning, you may be able to pay less tax.
Consult with a tax advisor for more information.
How do I calculate my minimum RRIF withdrawal?
Multiply your RRIF’s market value as of Jan. 1 of the calendar year by the annual minimum withdrawal percentage based on your age or your spouse’s age, also at the beginning of the year. See tables
Remember, if you have a RRIF through Sun Life, we calculate your minimum withdrawal dollar amount every year for you. However, if you want to take minimum withdrawals, you must tell us if you want to base those withdrawals on your age or on your spouse’s age. Keep in mind once you make this choice, this age is used for the life of the RRIF.
What is the $2,000 tax credit for RRIF withdrawals?
You may be able to claim a tax credit up to $2,000 if you receive income from a RRIF, a pension plan, certain annuities or other locked-in registered retirement income funds, and you’re age 65 or older during the year (or are receiving your RRIF income because of the death of your spouse).
This is called the pension income tax credit, which is a nonrefundable credit, meaning that it’s only applied against the amount of money you owe in taxes.
For federal tax purposes, this credit is offered at the lowest federal tax rate, which is 15%, or $300 – that’s how much you would be saving. What’s more, each province also offers a credit – the amount varies between $1,000 to $2,000 – at their lowest tax rate.
Consult with a tax advisor for more information.
This information is meant for educational and illustrative purposes only. Some conditions, exclusions and restrictions may apply.