Registered Retirement Income Fund

RRIF

Your retirement income phase. Convert your RRSP to RRIF and start receiving tax-efficient retirement income.

Age 71
Mandatory Conversion
5.28%
Minimum Withdrawal at 71
20%
Minimum at Age 95+

Professional Explanation

A Registered Retirement Income Fund (RRIF) is the retirement income phase of an RRSP. When you reach age 71, Canadian tax law requires you to convert your RRSP into either an RRIF, a life annuity, or withdraw all funds (which triggers full taxation). The RRIF allows you to continue tax-deferred growth while withdrawing income on a schedule based on your age and account balance.

Mandatory Conversion:

  • • By December 31 of the year you turn 71
  • • Can convert earlier at any age
  • • Can have multiple RRIFs

Minimum Withdrawal Calculations (2025):

The minimum withdrawal is calculated as: Fair Market Value on January 1 × Age Factor

Age 71: 5.28%
Age 75: 5.82%
Age 80: 6.82%
Age 85: 8.51%
Age 90: 11.92%
Age 95+: 20%

You can use your spouse's age (if lower) to calculate the minimum, which extends the account longevity and reduces required withdrawals in early retirement years.

Tax Implications:

  • • Minimum withdrawal amount: No withholding tax
  • • Excess withdrawals: Subject to withholding tax (10-30% depending on province and amount)
  • • All withdrawals: Reported on T4RIF slip and taxed as income

Flexibility:

  • • No maximum withdrawal limit—you can withdraw more than the minimum
  • • Can continue to make strategic withdrawals based on tax planning needs
  • • Eligible for pension income splitting if you're age 65+
  • • Funds continue to grow tax-deferred

Key Difference from RRSP:

  • • RRSP: Contribution-based (you put money in)
  • • RRIF: Distribution-based (you take money out)
  • • No contributions allowed to RRIF (though you can transfer additional funds from RRSP if you have room)

Simple Explanation

Easy to Understand

A RRIF is what happens to your RRSP when you turn 71 and retire. You have to convert it because the government says: "Okay, you've saved this money with tax breaks, and now it's time to start taking it out and paying taxes on it."

Here's how it works: The government calculates the minimum amount you have to take out each year based on your age. The older you get, the more you have to take out. At 71, you might only take out about 5% of your money. By 95, you have to take out 20%.

But here's the flexibility: You don't have to take out just the minimum. You can take out more if you want. And the money you leave in continues to grow without being taxed.

It's basically your retirement income account—you're living off the savings you built up in your RRSP.

Best For

  • Retirees age 71+
  • Retirement income planning
  • Tax-efficient withdrawals
  • Pension income splitting (65+)

Key Benefits

  • Tax-deferred growth continues
  • Flexible withdrawal amounts
  • No withholding tax on minimums
  • Can use spouse's age for calculation

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