A RRIF (Registered Retirement Income Fund) is a tax-deferred account which is usually created once an investor collapses their RRSP account and moves it into a RRIF account. This RRIF then allows for a steady retirement income to be paid out over the course of an investor’s life. The same investments held in the RRSP can be transferred over into the RRIF account if desired.
RRIFs can be opened at any age, but must be done before the end of the year in which the investor turns age 71.
The investor can choose the amount of money he/she would like to receive in income each year. But starting no later than age 71, the investor must take out a minimum amount as indicated by the table below…
|
MINIMUM REQUIRED PAYMENT AS A PERCENTAGE OF TOTAL RRIF ASSETS |
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|
Age |
Min. % withdrawal |
Old Rules (pre 2015) |
|
71 |
5.28 |
7.38 |
|
72 |
5.40 |
7.48 |
|
73 |
5.53 |
7.59 |
|
74 |
5.67 |
7.71 |
|
75 |
5.82 |
7.85 |
|
76 |
5.98 |
7.99 |
|
77 |
6.17 |
8.15 |
|
78 |
6.36 |
8.33 |
|
79 |
6.58 |
8.53 |
|
80 |
6.82 |
8.75 |
|
81 |
7.08 |
8.99 |
|
82 |
7.38 |
9.27 |
|
83 |
7.71 |
9.58 |
|
84 |
8.08 |
9.93 |
|
85 |
8.51 |
10.33 |
|
86 |
8.99 |
10.79 |
|
87 |
9.55 |
11.33 |
|
88 |
10.21 |
11.96 |
|
89 |
10.99 |
12.71 |
|
90 |
11.92 |
13.62 |
|
91 |
13.06 |
14.73 |
|
92 |
14.49 |
16.12 |
|
93 |
16.34 |
17.92 |
|
94 |
18.79 |
20 |
|
95+ |
20 |
20 |
* The above table illustrates the minimum percentage withdrawals for ‘Non-qualifying RRIFs’ (RRIFs established after 1993). ‘Qualifying RRIFs’ established before 1993 may have withdrawals slightly lower than the percentages shown for ages 71 through 77 inclusive in the table above.
The minimum amount to be withdrawn from a RRIF over one full calendar year is based on the market value of your account on Dec. 31st of each year.
