RRIF Minimum Withdrawal

From RRSP to RRIF: the deadline at 71

An RRSP cannot last forever. By December 31 of the year you turn 71, you must convert it to a RRIF, buy an annuity, or cash it out (and pay tax on the whole amount at once, which almost nobody should do). Most people choose the RRIF: the investments keep growing tax-deferred, but the government now requires money to come out.

Minimum withdrawals start the year after the RRIF opens. Convert your RRSP in 2026 and your first mandatory withdrawal is in 2027. Each year, the minimum equals your account balance on January 1 multiplied by the rate for your age on January 1.

The age-on-January-1 detail matters. If you turn 72 in March 2026, you were 71 on January 1, so you use the age-71 rate of 5.28% (as of July 2026) for all of 2026. You never blend rates mid-year.

You can open a RRIF before 71 if you want retirement income earlier. Before age 71, the minimum rate is calculated as 1 divided by (90 minus your age), which is where the 4.00% rate at age 65 comes from: 1 divided by 25.

Minimum withdrawal rates by age

From age 71 onward the rates come from a government table rather than the formula, and they climb steadily so the account is drawn down over your lifetime. Here is the full schedule our RRIF Calculator uses:

The younger-spouse election

When you set up your RRIF, you can elect to base the minimums on your younger spouse's age instead of your own. A 71-year-old with a 65-year-old spouse can withdraw 4.00% instead of 5.28% (as of July 2026), permanently lowering every required withdrawal and keeping more money growing tax-deferred.

The election must be made when the RRIF is opened, not later. You cannot switch an existing RRIF to your spouse's age, so make the decision before signing the conversion paperwork. Choosing the lower minimum costs nothing in flexibility: you can always withdraw more than the minimum in any year you want to.

How withdrawals are taxed

Every dollar out of a RRIF is taxable income, but the withholding rules split in two. The minimum amount has no tax withheld at source. That does not make it tax-free: you settle the bill when you file your return, so set money aside if your withdrawals are large.

Amounts above the minimum face withholding tax immediately. In most provinces the rates are 10% on excess amounts up to $5,000, 20% from $5,000 to $15,000, and 30% above $15,000 (as of July 2026). In Québec, the federal portion is 5%, 10% and 15% on those same brackets, plus 14% Québec withholding (as of July 2026).

One more knock-on effect: as the rates climb past 8%, 10% and beyond in your 80s and 90s, forced withdrawals from a large RRIF can push your net income over the OAS clawback threshold. This is exactly why many retirees deliberately draw down registered money earlier than required.