RRIF Minimum Withdrawal Rules in Canada

If you have a RRIF, you must withdraw at least a federally-set minimum every calendar year, starting the year after the RRIF is opened. The amount is mechanical — the fair market value at the start of the year times an age-based percentage. This page covers the rules and edge cases. For the broader question of when to convert your RRSP, see RRSP to RRIF conversion rules in Canada.

How the minimum is calculated

From age 65 to 70, the minimum is calculated as 1 / (90 − age). From age 71 onward, the minimum is set by a federal regulation table. There are no Quebec-specific differences for federal-RRIF minimums; Quebec applies the same withdrawal floor.

The reference is the “prescribed factor” in section 7308 of the Income Tax Regulations. CRA publishes the working table at Registered Retirement Income Fund (RRIF) — minimum amount.

Minimum percentage by age

The percentage is applied to the value of the RRIF on January 1. So if your RRIF holds $400,000 on January 1 and you turn 75 that year, the minimum withdrawal for the year is $400,000 × 5.82% = $23,280.

The spousal-age election

You can elect, on the RRIF application, to use your spouse’s age instead of your own to calculate the minimum. If your spouse is younger, the minimum is lower for life — more capital stays in the RRIF growing tax-deferred.

This election is irrevocable. Once made, you can’t switch back to your own age. Run the math before signing: a 5-year age gap on a $500,000 RRIF can leave $30,000+ more invested per decade.

If your spouse dies, the election doesn’t reverse. You continue using their age (effectively as if they were still alive each year) for your RRIF’s minimum calculation.

Withholding above the minimum

The RRIF minimum is paid without withholding tax. Anything above the minimum is treated like an RRSP withdrawal for withholding:

Withholding is a prepayment, not the final tax. The total amount owed depends on your marginal rate. See RRSP withholding tax rates and how they apply for the full mechanic.

OAS clawback and pension-income amount

RRIF withdrawals are fully taxable as income. They count toward the threshold that triggers the OAS recovery tax (the “clawback”), which kicks in around $90,997 of net income in 2024 and is indexed yearly. Above that, every dollar of additional income reduces the next year’s OAS by 15%.

RRIF income (but not RRSP withdrawals) qualifies for the federal pension income amount — a non-refundable tax credit on the first $2,000 of pension income, available from age 65. Provinces add their own pension credits on top. From age 65, RRIF income can also be split up to 50/50 with a spouse for tax purposes.

What happens to the RRIF when you die

If your spouse is named as the successor annuitant, the RRIF rolls over to them and continues. Minimum withdrawals continue at the new annuitant’s age. If a non-spouse beneficiary is named, the RRIF is collapsed and the full balance is added to the deceased’s final T1 return as income — usually a large one-year tax hit unless a financially-dependent child or grandchild qualifies for special rules.

Common mistakes

• Withdrawing only the minimum every year. The minimum is a floor, not a strategy. If you have a big RRIF and modest other income, drawing more in your 60s often saves tax over a lifetime.
• Skipping the spousal-age election when relevant. If your spouse is meaningfully younger, the lower minimum compounds significantly over 20 years.
• Forgetting that excess withdrawals withhold tax. If you ask for a one-time $30,000 above the minimum, the institution sends 30% to CRA and you receive $21,000.
• Triggering OAS clawback inadvertently. A large optional withdrawal in your late 60s can push you through the OAS threshold for the year, costing 15% on top of marginal tax.