Catch my RRIF?
Plus, since your investments remain registered, they continue to grow tax-free—an advantage you’d lose if you simply cashed in your RRSPs. So, be sure to ask your financial institution to automatically transform your RRSPs into RRIFs before the deadline.
By December 31 of each year, you will have had to withdraw a specific amount from your RRIF. This amount will be added to your income and will therefore be taxable.1.
Know that there is no maximum withdrawal limit when it comes to RRIFs.
Before and After Age 71
By the way, it’s to your advantage to use the younger of your two ages when calculating the minimum withdrawal.
As of age 71, the minimum withdrawal amount is equal to a percentage of the fund’s value on January 1. This percentage increases every year until age 95.
Age / Percentage
71: 5,28 %
80: 6,82 %
90: 11,92 %
Starting at 95: 20 %
You can ask your financial institution to schedule automatic withdrawals, whether annually or monthly. You can always adjust them as you see fit. You can also withdraw an additional amount when need be (a trip, perhaps?).