RIF payments Regulations
By December 31 of your 71st birthday year, Canadian law requires that you convert your RSPs to a RIF, an investment plan that establishes a retirement income stream.
Annual minimum payment is based on your age on January 1, and is calculated as a percentage of your RIF value at the beginning of each year- If you have a younger spouse, you can use his or her age to determine the annual minimum payment
- If your spouse is younger than you, using his or her age to determine the annual minimum payments results in lower payments
- This is beneficial if you do not need all of your RIF income right now, since lower payments leave more money invested in your RIF, resulting in the potential for greater growth and inflation protection
Discover your annual minimum withdrawal rate
RIF Annual minimum withdrawal rate at age 70 | 5.0% |
|---|
Annual minimum withdrawal rates based on age
Chart showing the R I F minimum annual withdrawal rates depending on your age as of January 1 Age as of January 1
RIF Annual Minimum Withdrawal Rates
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%
How payments are taxed
- Withdrawals from a RIF are considered taxable income in the year withdrawn
- Taxation rates vary by province
- Withholding tax is applied, by federal law, to any withdrawals from a registered plan
- The amount withheld depends on the amount of the withdrawal and the province in which you live
- Withholding tax is not applied if you only withdraw the minimum amount in each province
If you withdraw amounts above the minimum, the following withholding taxes will apply.
Applicable to residents of all provinces, except Quebec
Amount withdrawn above the minimum amount | Withholding tax in all provinces, except Quebec footnote 2 |
|---|---|
Up to $5,000 | 10% |
$5,001 to $15,000 | 20% |
More than $15,000 | 30% |
Applicable to residents of Quebec
Amount withdrawn above the minimum amount | Federal withholding tax footnote 3 | Provincial withholding tax |
|---|---|---|
Up to $5,000 | 5% | 16% |
$5,001 to $15,000 | 10% | 16% |
More than $15,000 | 15% | 16% |
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Footnote 1 details Age used depends on the date of birth being used to calculate the minimum.
Footnote 2 details The federal withholding rates are technically 5%, 10% and 15%. These rates have been grossed-up to 10%, 20% and 30% by a parallel provincial tax.
Footnote 3 details In Quebec, in addition to the base 5%, 10% and 15%, there is provincial withholding of 16%. This results in combined rates of 21%, 26% and 31% instead of the 10%, 20% and 30% withholding tax applicable in other provinces for withdrawals above the minimum amount. Effective: January 1, 2005.