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A Registered Retirement Income Fund (RRIF) is the natural successor to your RRSP. Your RRSP must be closed out by December 31 of the year you turn 71, and moving it to a RRIF is the usual route. Here’s how minimum withdrawals, taxes, and strategies work.
RRSP to RRIF Conversion
| Deadline | Rule |
|---|---|
| Close the RRSP by | December 31 of the year you turn 71 (move it to a RRIF, buy an annuity or withdraw it) |
| First withdrawal | By December 31 of the year after conversion (or sooner) |
| Can move to a RRIF earlier | Yes — any time before 71 |
| Alternatives | Lump-sum withdrawal (taxed as income), buy an annuity |
RRIF Minimum Withdrawal Percentages
| Age at Jan 1 | Minimum % of Balance |
|---|---|
| 65 | 4.00% |
| 66 | 4.17% |
| 67 | 4.35% |
| 68 | 4.55% |
| 69 | 4.76% |
| 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% |
| 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% |
| 90 | 11.92% |
| 91 | 13.06% |
| 92 | 14.49% |
| 93 | 16.34% |
| 94 | 18.79% |
| 95+ | 20.00% |
Minimum Withdrawal Amounts
For different RRIF balances at key ages:
| RRIF Balance | Age 72 (5.40%) | Age 75 (5.82%) | Age 80 (6.82%) | Age 85 (8.51%) | Age 90 (11.92%) |
|---|---|---|---|---|---|
| $200,000 | $10,800 | $11,640 | $13,640 | $17,020 | $23,840 |
| $300,000 | $16,200 | $17,460 | $20,460 | $25,530 | $35,760 |
| $400,000 | $21,600 | $23,280 | $27,280 | $34,040 | $47,680 |
| $500,000 | $27,000 | $29,100 | $34,100 | $42,550 | $59,600 |
| $750,000 | $40,500 | $43,650 | $51,150 | $63,825 | $89,400 |
| $1,000,000 | $54,000 | $58,200 | $68,200 | $85,100 | $119,200 |
How RRIF Withdrawals Are Taxed
RRIF withdrawals are generally taxable as regular income, at the federal rates below plus your province or territory’s rates:
| Total Annual Income (including RRIF) | Federal Tax Rate |
|---|---|
| Up to $58,523 | 14% |
| $58,524 – $117,045 | 20.5% |
| $117,046 – $181,440 | 26% |
| $181,441 – $258,482 | 29% |
| Over $258,482 | 33% |
Withholding Tax on RRIF Withdrawals
| Amount Over Minimum | Withholding Rate (non-Quebec) | Withholding Rate (Quebec) |
|---|---|---|
| Minimum withdrawal | 0% (no withholding) | 0% |
| Up to $5,000 over minimum | 10% | 5% + 14% provincial (single payment) |
| $5,001 – $15,000 over minimum | 20% | 10% + 14% provincial (single payment) |
| Over $15,000 above minimum | 30% | 15% + 14% provincial (single payment) |
⚠️ No withholding on minimum withdrawals doesn’t mean no tax — you’ll owe tax when you file your return.
RRIF Depletion Projections
How long will your RRIF last? Assuming minimum withdrawals and various return rates:
$500,000 RRIF Starting at Age 72
| Return Rate | Balance at 80 | Balance at 85 | Balance at 90 | Balance at 97 |
|---|---|---|---|---|
| 0% (no growth) | $306,000 | $208,000 | $125,000 | $36,000 |
| 3% | $394,000 | $314,000 | $223,000 | $81,000 |
| 5% | $464,000 | $410,000 | $323,000 | $138,000 |
| 7% | $544,000 | $533,000 | $466,000 | $233,000 |
Balances are as of January 1 of each age. The minimum (the CRA prescribed factor times the January 1 balance) is taken at year end, and the return is earned on the full balance during the year. Because each minimum is a percentage of what is left, a RRIF on minimum withdrawals never reaches zero, even at 0% growth. These are wealthvieu calculations using the CRA factors, not a forecast.
At a 7% return the balance keeps growing until about age 81, when the minimum rate passes the return; at 5% or less it shrinks from the first year.
$300,000 RRIF Starting at Age 72
| Return Rate | Balance at 80 | Balance at 85 | Balance at 90 |
|---|---|---|---|
| 0% | $184,000 | $125,000 | $75,000 |
| 3% | $236,000 | $189,000 | $134,000 |
| 5% | $278,000 | $246,000 | $194,000 |
| 7% | $326,000 | $320,000 | $279,000 |
Tax Strategies for RRIFs
1. Use Your Younger Spouse’s Age
If your spouse is younger, you can choose to base minimum withdrawals on their age. You make this choice on the original RRIF application, and it can’t be changed later:
| Your Age | Spouse’s Age | Your Minimum % | Spouse’s Minimum % | Savings |
|---|---|---|---|---|
| 75 | 70 | 5.82% | 5.00% | 14% less withdrawn |
| 80 | 75 | 6.82% | 5.82% | 15% less withdrawn |
| 85 | 80 | 8.51% | 6.82% | 20% less withdrawn |
This keeps more money growing tax-deferred, but the choice of your spouse’s age is made when the RRIF is set up.
2. Convert RRSP to RRIF Before 71
| Strategy | Benefit |
|---|---|
| Convert at 65 | Start claiming the pension income amount (up to $2,000 federally) |
| Convert at 65 | Enable pension income splitting with spouse |
| Withdraw in low-income years | Can mean less tax than larger forced withdrawals taxed at higher rates later |
3. Pension Income Splitting
| Without Splitting | With Splitting |
|---|---|
| You: $70,000 RRIF income | You: $35,000 |
| Spouse: $20,000 income | Spouse: $55,000 |
| Higher combined tax bracket | More even income → lower combined tax |
Up to 50% of eligible pension income (RRIF at 65+) can be split with your spouse.
4. Manage OAS Clawback
| Strategy | Detail |
|---|---|
| Keep net income below the recovery threshold ($95,323 for 2026 income, which applies to OAS paid July 2027 to June 2028) | Avoid OAS clawback (15% above threshold) |
| Draw down RRSP/RRIF earlier | Reduce future forced withdrawals |
| Withdraw extra in low-income years | Smooth income over retirement |
5. Withdraw More Than Minimum When Tax-Efficient
| Scenario | Action |
|---|---|
| Low-income year (e.g., 65-71) | Withdraw extra, contribute surplus to TFSA if you have room |
| Income under $58,523 | Stay in lowest federal bracket |
| Large RRIF balance | Melt it down before forced large withdrawals |
RRIF at Death
| Beneficiary | Tax Treatment |
|---|---|
| Spouse/common-law partner | Can roll to their RRSP/RRIF, taxed when they withdraw |
| Financially dependent child/grandchild | Can buy an annuity; can transfer to their RRSP or RRIF only if dependent because of a physical or mental impairment |
| Anyone else | Full remaining balance taxed on your final return |
Tax on a $500,000 RRIF at Death (Non-Spouse Beneficiary)
The tax on a large RRIF left to a non-spouse beneficiary depends on your province and your other income that year. If it isn’t left to a spouse or common-law partner (or a financially dependent child or grandchild), the full balance is added to your income on your final return, so much of a large RRIF can be taxed at the top rates.
RRIF vs Annuity
| Feature | RRIF | Annuity |
|---|---|---|
| Control | Full control of investments | No control (insurance company manages) |
| Flexibility | Withdraw more than the minimum, never less | Payments set by the contract |
| Longevity risk | Can run out | None with a life annuity (pays for life) |
| Growth potential | Depends on investments | Set by the contract |
| Estate value | Remaining balance goes to estate | Nothing on death unless a guarantee period applies |
| Inflation protection | Can adjust withdrawals | Usually not (unless indexed) |
Key Takeaways
- Convert RRSP to RRIF by December 31 of the year you turn 71, or buy an annuity or withdraw it instead
- Minimum withdrawals are about 5.28% at age 71 and rise to 20% (age 95+)
- Withdrawals are generally taxable as regular income
- Choose your younger spouse’s age when setting up the RRIF to reduce minimum withdrawals
- Convert at 65 to claim the pension income amount (up to $2,000) and split income with a spouse
- A $500K RRIF at 5% returns can last well beyond age 90 with minimum withdrawals
- Remaining RRIF is taxed at death unless left to a spouse or a financially dependent child or grandchild
- Withdraw extra in low-income years and put the surplus in your TFSA to smooth lifetime taxes
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy