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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
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%

For annuitants age 70 and under, the annual minimum payment is calculated as follows:

RIF value on January 1 of the current year
90 - age of annuitant/spouse1 on January 1

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  • Withdrawals from a RIF are considered taxable income in the year withdrawn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Amount withdrawn above the minimum amount Withholding tax in all provinces, except Quebec2
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Amount withdrawn above the minimum amount Federal withholding tax3 Provincial withholding tax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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1Age used depends on the date of birth being used to calculate the minimum. Back

2The 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. Back

3In 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. Back