Note: Withholding tax rates are estimates based on Canadian federal rates for lump-sum payments. Quebec rates differ. The minimum amount is not subject to withholding tax at source, but is taxable income.
Understanding RRIF Withdrawal Rates
A Registered Retirement Income Fund (RRIF) is a tax-deferred retirement plan in Canada that acts as an extension of your RRSP. Once you convert your RRSP to a RRIF (which must be done by the end of the year you turn 71), you are required by the Canada Revenue Agency (CRA) to withdraw a minimum amount every year.
How Minimum Withdrawals are Calculated
The minimum withdrawal is calculated by multiplying the market value of your RRIF account on January 1st by a specific percentage factor determined by your age. These factors increase as you get older, designed to deplete the account over time.
The Formula: Minimum Amount = RRIF Value (Jan 1) × Age Factor
Under Age 71
If you convert to a RRIF before age 71, the calculation is simpler. The factor is calculated as 1 / (90 - Age). For example, if you are 65, the factor is 1/(90-65) = 4.00%.
CRA Minimum Withdrawal Table (Age 71+)
Once you reach age 71, specific percentages set by the CRA apply. Here is a reference table used by our calculator:
Age
Rate (%)
Age
Rate (%)
71
5.28%
81
7.08%
72
5.40%
82
7.38%
73
5.53%
83
7.71%
74
5.67%
84
8.08%
75
5.82%
85
8.51%
76
6.00%
86
8.99%
77
6.17%
87
9.55%
78
6.36%
88
10.21%
79
6.58%
89
10.99%
80
6.82%
95+
20.00%
Using Your Spouse's Age
One effective strategy to reduce your tax burden is to calculate your minimum withdrawal based on a younger spouse's age. A younger age results in a lower withdrawal percentage, allowing you to keep more money tax-sheltered in the RRIF for longer. You must decide to use this option when you first set up the RRIF.
Withholding Taxes on Withdrawals
It is crucial to understand that no withholding tax applies to the minimum withdrawal amount. However, if you withdraw more than the minimum, the financial institution must withhold tax on the excess amount.
Up to $5,000 excess: 10% (20% in Quebec)
$5,001 to $15,000 excess: 20% (25% in Quebec)
Over $15,000 excess: 30% (30% in Quebec)
Remember, withholding tax is just a prepayment. Your actual tax liability is determined when you file your annual income tax return, where the withdrawal is added to your total taxable income.
function toggleSpouseInput() {
var checkbox = document.getElementById('useSpouseAge');
var wrapper = document.getElementById('spouseAgeInputWrapper');
if (checkbox.checked) {
wrapper.style.display = 'block';
} else {
wrapper.style.display = 'none';
}
}
function calculateRRIF() {
// 1. Get Inputs
var balance = parseFloat(document.getElementById('rrifBalance').value);
var age = parseFloat(document.getElementById('rrifAge').value);
var useSpouse = document.getElementById('useSpouseAge').checked;
var spouseAge = parseFloat(document.getElementById('spouseAge').value);
var planned = parseFloat(document.getElementById('plannedWithdrawal').value);
// Validation
if (isNaN(balance) || balance < 0) {
alert("Please enter a valid RRIF account balance.");
return;
}
if (isNaN(age) || age 115) {
alert("Please enter a valid age.");
return;
}
// Determine calculation age
var calcAge = age;
if (useSpouse) {
if (isNaN(spouseAge) || spouseAge < 18) {
alert("Please enter a valid spouse age.");
return;
}
if (spouseAge < age) {
calcAge = spouseAge;
}
}
// 2. Determine Factor
var factor = 0;
// CRA Table Logic
if (calcAge = 95) {
factor = 0.20;
} else if (factors[calcAge]) {
factor = factors[calcAge];
} else {
// Fallback / error catch
factor = 0.20;
}
}
// 3. Calculate Minimum
var minAmount = balance * factor;
// 4. Handle Planned Withdrawal
var actualWithdrawal = 0;
if (isNaN(planned) || planned 0) {
if (excessAmount <= 5000) {
taxRate = 0.10;
} else if (excessAmount 0 ? excessAmount : 0).toLocaleString('en-CA', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('displayTax').innerText = "$" + withholdingTax.toLocaleString('en-CA', {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('displayNet').innerText = "$" + netAmount.toLocaleString('en-CA', {minimumFractionDigits: 2, maximumFractionDigits: 2});
}