RRIF Income Planning


Minimum Annual Withdrawals

To deterimine the minimum amount that must be withdrawn from a RRIF in a given year for a specific annuitant, multiply the January 1 fair market value of the RRIF by the factor asssociated with your age on January 1.  You can opt to use the age of your spouse or common-law partner if this election is made before the first withdrawal.  No minimum withdrawal is required in the year a RRIF is established.  To maximize tax-deferred growth in the RRIF, set up withdrawals to occur on December 31.  While RRIFs have a minimum that must be withdrawn in a year, there is no maximum.

Withholding Taxes

Generally, all funds withdrawn from registered funds such as a RRSP, RRIF, or LIF are fully taxable as income.  Minimum annual withdrawal amounts from RRIFs or LIFs are not subject to withholding taxes.  For withdrawals from an RRSP and withdrawal amounts over and above these RRIF/LIF minimums, withholding taxes are as follows:

  • Withdrawals up to $5,000 - 10% tax
  • Withdrawals $5,000 to $15,000 - 20% tax
  • Withdrawals over $15,000 - 30% tax
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