How this calculator works
Enter the RRIF value on January 1, your age on January 1 and the amount you plan to take out. The minimum is the January 1 value multiplied by the prescribed factor for your age. Below 71 the factor is 1 divided by 90 minus your age, so it is 4% at 65 and 5% at 70. From 71 the Income Tax Regulations set the factor: 5.28% at 71, rising each year to 20% at 95 and above. The minimum itself has no withholding tax, but it is fully taxable income. Any amount above the minimum is a lump sum, and 10% is withheld up to $5,000, 20% from $5,000 to $15,000 and 30% above $15,000. Withholding is a prepayment, not the final tax. The page assumes the RRIF has already been open for a year, so the first-year exemption from the minimum does not apply, and it does not apply the younger spouse election, the Quebec withholding schedule or any provincial tax at source.
Formula
Factor = 1 / (90 - age) below 71, or the prescribed factor from 71 (20% at 95 and above). Minimum = January 1 RRIF value x factor. Excess = max(0, withdrawal - minimum). Withholding = excess x 10%, 20% or 30% by band. Net = withdrawal - withholding tax.
Worked example
A $500,000 RRIF at age 71 has a 5.28% factor, so the minimum is $26,400. Withdrawing $40,000 leaves $13,600 above the minimum, which falls in the 20% band, so $2,720 is withheld and $37,280 is paid out. At 80 the factor is 6.82% and the minimum is $34,100.
Frequently asked questions
Is the minimum amount taxed?
Yes. The whole withdrawal, minimum included, is taxable income. The difference is that withholding tax is applied only to the part above the minimum, so the minimum is not withheld at source.
When is the minimum due?
The minimum must be paid in the calendar year. There is no minimum in the year the RRIF is opened; it starts the following year.
Can I use my spouse's age?
Yes, if the election was made on the RRIF application, which is irrevocable. A younger spouse gives a lower factor and therefore a lower minimum, but when both spouses are over 71 their factors converge.
Is the withholding the final tax?
No. It is a prepayment. Your actual tax is set by your marginal rate when you file, so you may owe more or get some back.