---
title: "RRIF Withdrawal Rules in Canada: What You Need to Know"
id: "18306"
type: "post"
slug: "rrif-withdrawal-rules-canada"
published_at: "2026-10-27T08:19:55+00:00"
modified_at: "2026-10-27T08:19:59+00:00"
url: "https://taxccount.com/blog/rrif-withdrawal-rules-canada/"
markdown_url: "https://taxccount.com/blog/rrif-withdrawal-rules-canada.md"
excerpt: "An RRSP is a powerful savings tool during your working years, but eventually, you have to start drawing that money down. When you reach age 71, the government requires you to convert your RRSP into a Registered Retirement Income Fund..."
taxonomy_category:
  - "Taxccount"
---

[Taxccount](https://taxccount.com/blog/category/taxccount/)
[October 27, 2026](https://taxccount.com/blog/2026/10/)

# RRIF Withdrawal Rules in Canada: What You Need to Know

An RRSP is a powerful savings tool during your working years, but eventually, you have to start drawing that money down. When you reach age 71, the government requires you to convert your RRSP into a Registered Retirement Income Fund (RRIF) or another retirement income option. From that point on, you must withdraw a minimum amount each year.

Understanding RRIF rules helps you plan for retirement income, minimize taxes, and make your savings last as long as possible. This guide explains how it all works.

Table of Contents

[Toggle](#)

## What Is a RRIF?

A RRIF is a type of registered retirement income account. It holds the same investments as your RRSP — stocks, bonds, GICs, mutual funds, ETFs, and so on — but instead of making contributions, you are making withdrawals.

The key difference between an RRSP and a RRIF is that an RRSP is designed for saving, while a RRIF is designed for spending. You cannot contribute new money to a RRIF (except through a spousal RRSP rollover or certain special transfers).

## Planning your retirement income?

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## When Must You Convert Your RRSP to a RRIF?

You must convert your RRSP to a RRIF (or another eligible option like an annuity) by December 31 of the year you turn 71.

You can convert earlier if you choose. Some retirees convert at 65 to begin taking income and access the pension income credit (more on this below).

## Minimum RRIF Withdrawal Rules

Once you have a RRIF, you must withdraw at least a minimum amount each year. This amount is calculated based on your age (or your spouse’s age if you choose) and the market value of your RRIF at the start of the year.

The minimum percentage increases as you get older. For example:

- **At age 72:** approximately 5.28% of your RRIF value
- **At age 75:** approximately 5.82%
- **At age 80:** approximately 6.82%
- **At age 85:** approximately 8.51%
- **At age 90:** approximately 11.92%
- **At age 94 and older:** 20%

**Note:** The exact percentages are set by the Income Tax Act and are published annually by the CRA.

Using your younger spouse’s age: If your spouse is younger than you, you can elect to use their age to calculate the minimum. This results in a lower minimum withdrawal, which reduces your taxable income and allows more funds to continue growing inside the RRIF.

You can always withdraw more than the minimum. But the minimum must be taken each calendar year (except in the year you open the RRIF, when you are not required to make a withdrawal).

## How RRIF Withdrawals Are Taxed

All RRIF withdrawals are fully included in your taxable income in the year you receive them. They are taxed at your marginal tax rate, just like employment or pension income.

Your RRIF issuer will report your withdrawals on a T4RIF slip, and this amount will appear on your tax return.

## Withholding Tax on RRIF Withdrawals

When you receive a RRIF withdrawal, your financial institution is required to withhold income tax on amounts above the minimum required withdrawal.

For withdrawals from Canadian RRIFs:

- Amounts equal to the minimum withdrawal: no withholding tax
- Amounts above the minimum (up to $5,000): 10% withholding
- Amounts above minimum between $5,001 and $15,000: 20% withholding
- Amounts above minimum over $15,000: 30% withholding

(Quebec rates differ slightly.)

Note that withholding tax is not the final tax. It is a prepayment toward your annual tax liability. When you file your return, you reconcile the actual tax owed against the withholding.

## Pension Income Credit

RRIF withdrawals qualify for the pension income tax credit starting at age 65. This is a non-refundable federal tax credit on the first $2,000 of pension income received.

This is one reason some Canadians convert their RRSP to a RRIF at age 65 rather than waiting until 71 — to start benefiting from this credit earlier.

RRIF income at age 65+ is also eligible for pension income splitting, which means you can allocate up to 50% of your RRIF income to your spouse or common-law partner. This can reduce your household’s combined tax significantly.

## Strategies to Reduce Tax on RRIF Withdrawals

### 1. Use a younger spouse’s age for minimums

Electing to base your minimum on a younger spouse’s age lowers your mandatory annual withdrawal, keeping more money inside the RRIF.

### 2. Spread withdrawals over time

Withdrawing steadily over many years keeps you in a lower tax bracket each year, compared to large lump-sum withdrawals.

### 3. Split RRIF income with your spouse

If you are 65 or older, allocate up to 50% of your RRIF income to your lower-earning spouse to reduce your combined tax.

### 4. Convert some RRSP to RRIF before 71

Making smaller withdrawals starting at 65 can help reduce the size of the RRIF by the mandatory conversion age, lowering future minimum withdrawals.

### 5. Use TFSA to supplement income

Withdrawals from a TFSA are tax-free and do not count toward your net income. This means TFSA withdrawals do not reduce income-tested benefits like Old Age Security.

## What Happens to Your RRIF When You Die?

If you have a named spouse or common-law partner as a beneficiary, your RRIF can be transferred to their RRIF or RRSP without immediate tax. This is called a spousal rollover and defers the tax to when the surviving spouse eventually withdraws the funds.

If the beneficiary is anyone other than a spouse (such as an adult child), the full value of the RRIF is added to the deceased’s income in the year of death and taxed at their marginal rate. This can result in a very large tax bill for the estate.

## Table of Summary

| Topic | Key Information |
| --- | --- |
| What Is a RRIF? | A Registered Retirement Income Fund (RRIF) is a retirement account that holds investments such as stocks, bonds, GICs, mutual funds, and ETFs. Unlike an RRSP, which is designed for saving, a RRIF is designed for retirement withdrawals. |
| RRSP Conversion Deadline | You must convert your RRSP to a RRIF, an annuity, or another eligible retirement income option by December 31 of the year you turn 71. You may convert earlier if it suits your retirement plan. |
| Converting at Age 65 | Some Canadians convert part of their RRSP to a RRIF at age 65 to begin receiving retirement income and potentially qualify for the pension income tax credit. |
| Minimum RRIF Withdrawals | RRIF holders must withdraw a minimum amount annually, calculated using the account’s value at the beginning of the year and the applicable age factor. No minimum withdrawal is required in the year the RRIF is opened. |
| Minimum Withdrawal at Age 72 | The minimum withdrawal percentage is approximately 5.28% of the RRIF’s value. |
| Minimum Withdrawal at Age 75 | The minimum withdrawal percentage is approximately 5.82% of the RRIF’s value. |
| Minimum Withdrawal at Age 80 | The minimum withdrawal percentage is approximately 6.82% of the RRIF’s value. |
| Minimum Withdrawal at Age 85 | The minimum withdrawal percentage is approximately 8.51% of the RRIF’s value. |
| Minimum Withdrawal at Age 90 | The minimum withdrawal percentage is approximately 11.92% of the RRIF’s value. |
| Minimum Withdrawal at Age 94 and Older | The minimum withdrawal percentage reaches 20% of the RRIF’s value. The applicable percentages are established under the Income Tax Act and published annually by the CRA. |
| Using a Younger Spouse’s Age | You may elect to use your younger spouse’s or common-law partner’s age to calculate the minimum withdrawal. This can reduce mandatory withdrawals, lower taxable income, and allow more investments to remain in the RRIF. |
| Withdrawing More Than the Minimum | You can withdraw more than the required minimum at any time. However, the additional amount is taxable and may be subject to withholding tax. |
| Taxation of RRIF Withdrawals | All RRIF withdrawals are included in taxable income for the year received and taxed at the individual’s marginal tax rate, similar to employment or pension income. |
| T4RIF Slip | Financial institutions issue a T4RIF slip reporting RRIF withdrawals. The amounts are included on the recipient’s income tax return. |
| Withholding Tax on Minimum Withdrawals | No withholding tax generally applies to the minimum required RRIF withdrawal. This does not mean the withdrawal is tax-free; it remains taxable income. |
| Withholding Tax on Additional Withdrawals | For Canadian RRIFs, the article lists withholding rates of 10% on additional withdrawals up to $5,000, 20% on amounts from $5,001 to $15,000, and 30% on amounts above $15,000. Quebec rates differ. |
| Withholding Tax vs. Final Tax | Withholding tax is a prepayment toward annual tax liability, not the final amount owed. The actual tax is reconciled when the income tax return is filed. |
| Pension Income Tax Credit | Eligible RRIF income can qualify for the federal pension income tax credit from age 65. The credit applies to the first $2,000 of eligible pension income and is non-refundable. |
| Pension Income Splitting | From age 65, eligible RRIF income may qualify for pension income splitting. Up to 50% can be allocated to a spouse or common-law partner, potentially reducing the household’s combined tax. |
| Spread Withdrawals Over Time | Taking planned withdrawals over several years may help avoid large taxable income increases in a single year and keep income within lower tax brackets. |
| Convert Part of an RRSP Early | Starting withdrawals from part of an RRSP or converting some funds to a RRIF before age 71 may reduce the account balance and future mandatory withdrawal amounts. |
| Use a TFSA for Additional Income | TFSA withdrawals are tax-free and do not count toward taxable income. They may help supplement retirement income without increasing income used to calculate certain income-tested benefits, such as Old Age Security. |
| RRIF Beneficiary and Death | If a spouse or common-law partner is the eligible beneficiary, the RRIF may generally be transferred to their RRSP or RRIF on a tax-deferred basis, subject to applicable requirements. |
| RRIF Inherited by a Non-Spouse | If the beneficiary is someone other than a spouse, such as an adult child, the RRIF’s value may generally be included in the deceased’s income in the year of death, potentially creating a substantial tax liability for the estate. |
| Multiple RRIF Accounts | You can hold multiple RRIFs with different financial institutions. Minimum withdrawal requirements apply separately to each account. |
| Can a RRIF Be Converted Back to an RRSP? | No. Once an RRSP is converted to a RRIF, the conversion is permanent, and the funds cannot be moved back into an RRSP. |
| Eligible RRIF Investments | RRIFs can hold eligible investments similar to those permitted in RRSPs, including GICs, bonds, publicly traded stocks, mutual funds, and ETFs. |
| Key RRIF Tax Planning Considerations | Plan withdrawals carefully, consider a younger spouse’s age for minimum calculations, explore pension income splitting, and use TFSA savings strategically to manage retirement income and taxes. |

## Frequently Asked Questions

### Can I have more than one RRIF?

Yes. You can have multiple RRIFs from different financial institutions. The minimum withdrawal rules apply to each account separately.

### What if I take out more than the minimum in a given year?

You can withdraw as much as you want, but amounts above the minimum are subject to withholding tax. All withdrawals are added to your taxable income.

### Can I convert a RRIF back into an RRSP?

No. Once your RRSP has been converted to a RRIF, the conversion is permanent. You cannot move the funds back to an RRSP.

### What investments can I hold in a RRIF?

The same eligible investments as an RRSP: GICs, bonds, publicly traded stocks, mutual funds, ETFs, and other qualifying investments.

## Conclusion

A RRIF is simply the income phase of your RRSP. You must convert by age 71 and take out a minimum amount each year. Those withdrawals are taxed as income, so careful planning can help reduce your tax burden in retirement.

Starting withdrawals early (at 65), using your spouse’s age for minimum calculations, and splitting income with your partner are all practical strategies to stretch your RRIF further and pay less tax.

## How Taxccount Canada Can Help

RRIF withdrawals can affect your taxable income, government benefits, and retirement planning. Understanding the rules before taking additional money can help you make more informed decisions.

Taxccount Canada provides tax preparation and [accounting services](https://taxccount.com/accounting-and-business-related-services-in-canada/)
 to individuals and families across Canada. Our team can help you understand how RRIF income is reported, review the tax implications of retirement income, and prepare your personal tax return.

Contact Taxccount Canada to book a free consultation and discuss your tax filing needs.

## Book a free consultation with Taxccount today

[☎️ Get Help](https://taxccount.com/book-a-consultation/)

This is general information only and not professional advice. Consult a professional before acting.

##### Written and fact-checked by [Udit Gupta](https://taxccount.com/author-bio/)

***Ex Big4, Ernst & Young, Deloitte | International & Cross-Border Tax Specialist | CPA Canada In Depth Tax Training | Licensed Chartered Accountant from ICAI & MIA***

Udit Gupta has over 15 years of experience helping corporations & business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. Big 4 trained at Ernst & Young and Deloitte, and qualified as a Chartered Accountant in India and Malaysia, he founded accounting firm in 2014 to serve entrepreneurs, startups and non-resident business owners across Canada. [View Full Member Bio.](https://taxccount.com/author-bio/)

**Indian Institute of Chartered Accountant Member No. (521458) | Malaysian Institute of Accountants Membership number (CA 44667) | Ex Big4,Ex Ernst & Young (EY), Ex-Deloitte | CPA Canada In-Depth Tax Training 19 Dec 2023, 12 Jul 2022, 5 Jul 2023**  
**Editorial policy. Every article is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada.**

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