There are two stages in investing for your retirement; the first stage is accumulating retirement savings, typically in an RRSP. The next stage is to provide retirement income. When it's time to use the money you've accumulated for your retirement years, a Registered Retirement Income Fund (RIF) provide a regular income stream, while continuing to shelter your investment principal from income tax. Amounts paid out of a RRIF are taxable on receipt.
It is mandatory that you convert all your RRSPs by December 31st in the year you turn 71. The latest you are allowed to take your first payment is December 31st in the year you turn 72, however, the payment must be at least the full annual minimum* amount.
Tax law stipulates that a minimum payment must be withdrawn from your RRIF each year and reported as income. *This minimum annual payment is taken from a schedule that is based on your age or the age of your spouse if selected at the time the RRIF was opened. (You can also use to opt your spouse's birthdate if they are older in order to increase the amount of the minimum annual payment)
Use this calculator to find out how much you may withdraw from your RRIF each year.
As this rate fluctuates annually, your RRIF payment may change from year to year and will be adjusted automatically.
Please do not hesitate to contact our Member Solutions Centre toll free at 1-800-264-2926 if you have any questions about your RRIF, or any of our other services.
Effective January 1, 2021, RRIF letters will no longer be distributed to members. To obtain your annual payment amount and account details, please contact us at 1.800.264.2926 or use the calculator link above.