RRIF minimum withdrawals: converting your RRSP by 71
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Your RRSP cannot stay an RRSP forever. By December 31 of the year you turn 71, you have to withdraw it, convert it to a registered retirement income fund (RRIF), or use it to buy an annuity. Most people choose the RRIF, which comes with RRIF minimum withdrawals set by the Canada Revenue Agency (CRA). This guide explains the deadline, the minimum factors in effect as of October 20, 2026, and how withdrawals are taxed. For the wider picture, see our retirement guides.
The factors below come from the CRA's chart of prescribed RRIF factors. If you are still building your RRSP, start with our RRSP guide.
When your RRSP must be converted
The CRA requires you to choose an option for your RRSPs in the year you turn 71. The year you turn 71 is also the last year you can contribute to your own RRSP. If you were born in 1955, your deadline is December 31, 2026.
You have three options:
- Withdraw the money: the full amount is taxable income in the year you take it out, and your issuer withholds tax.
- Transfer to a RRIF: a direct transfer has no tax withheld, and the money keeps growing tax-sheltered.
- Buy an annuity: the money buys guaranteed payments for life or for a set period, with no tax withheld on the purchase.
You can also mix the options, for example by moving most of your RRSP into a RRIF and using part of it to buy an annuity. You do not have to wait until 71: you can open a RRIF earlier if you need retirement income sooner.
How the RRIF minimum withdrawal works
A RRIF has no maximum withdrawal, but it has a minimum. You do not have to take a minimum in the year you open the RRIF. From the following year on, the minimum is the fair market value of your RRIF on January 1, multiplied by a prescribed factor based on your age at the start of the year.
The formula before 71
If you are 70 or younger on January 1, the factor is 1 divided by (90 minus your age). At 65, that gives 1 ÷ 25, or 4.00%. At 70, it gives 1 ÷ 20, or 5.00%.
The CRA table from 71
From age 71, the factor comes from a fixed table in the Income Tax Regulations. It starts at 5.28% at 71 and reaches 20.00% at 95 and over. RRIFs set up before 1993 that never received new property (called qualifying RRIFs) use a slightly lower factor at 71, 5.26%.
| Age on January 1 | Minimum factor | Minimum on a $100,000 RRIF |
|---|---|---|
| 60 | 3.33% | $3,333 |
| 65 | 4.00% | $4,000 |
| 70 | 5.00% | $5,000 |
| 71 | 5.28% | $5,280 |
| 72 | 5.40% | $5,400 |
| 73 | 5.53% | $5,530 |
| 74 | 5.67% | $5,670 |
| 75 | 5.82% | $5,820 |
| 76 | 5.98% | $5,980 |
| 77 | 6.17% | $6,170 |
| 78 | 6.36% | $6,360 |
| 79 | 6.58% | $6,580 |
| 80 | 6.82% | $6,820 |
| 81 | 7.08% | $7,080 |
| 82 | 7.38% | $7,380 |
| 83 | 7.71% | $7,710 |
| 84 | 8.08% | $8,080 |
| 85 | 8.51% | $8,510 |
| 86 | 8.99% | $8,990 |
| 87 | 9.55% | $9,550 |
| 88 | 10.21% | $10,210 |
| 89 | 10.99% | $10,990 |
| 90 | 11.92% | $11,920 |
| 91 | 13.06% | $13,060 |
| 92 | 14.49% | $14,490 |
| 93 | 16.34% | $16,340 |
| 94 | 18.79% | $18,790 |
| 95 and over | 20.00% | $20,000 |
Using your spouse's age
When you set up the RRIF, you can choose to base the minimum on the age of your spouse or common-law partner. If your partner is younger, the factor is lower, so you have to withdraw less each year. This choice is made at the start, so decide before you sign the RRIF application.
A worked example
Say your RRIF is worth $300,000 on January 1, 2027, and you are 72 on that date. The factor at 72 is 5.40%, so your minimum for 2027 is $16,200. Your institution must pay you at least that amount during the year, in one payment or in instalments.
How RRIF withdrawals are taxed
Every dollar you take out of a RRIF is taxable income in the year you receive it. What changes between the minimum and anything above it is how much tax your institution withholds at the source.
No withholding on the minimum
Your RRIF carrier withholds no tax on the minimum amount. That does not make it tax-free. You report it on your return, and if your other income already puts you in a higher bracket, you may owe tax in April. Check where you land with the income tax calculator and our explanation of marginal tax rates.
Withholding on amounts above the minimum
Anything you take above the minimum is an excess amount. According to the CRA's withholding guide (RC4157), lump-sum rates outside Quebec are:
- Up to $5,000: 10%
- Over $5,000 up to $15,000: 20%
- Over $15,000: 30%
In Quebec, the federal rates are half as high. Revenu Québec adds its own withholding: 14% on the part of a single RRIF payment that exceeds the minimum, while regular periodic payments above the minimum follow the usual payroll-style method.
Using the example above, if you withdraw $25,000 instead of the $16,200 minimum, the $8,800 excess falls in the 20% band outside Quebec. Your institution would withhold $1,760. Withholding is a prepayment, not your final tax: the full $25,000 goes on your return.
RRIF or annuity?
A RRIF and an annuity solve different problems. A RRIF keeps you in control of the investments and the pace of withdrawals. An annuity hands the money to an insurer in exchange for a fixed income you cannot outlive.
A RRIF suits you if:
- You want to choose your investments: GICs, ETFs, or funds, inside a tax-sheltered account.
- You want flexible income: take the minimum in a quiet year and more when you need it.
- You already have guaranteed income: CPP, OAS, or a workplace pension covers your basic expenses.
A RRIF may not suit you if:
- You worry about outliving your savings: a RRIF can run out, while a life annuity cannot.
- You do not want to manage investments: a RRIF needs ongoing decisions about where the money sits.
- A market drop would force you to sell: the minimum withdrawal still applies when your investments are down.
| Feature | RRIF | Annuity |
|---|---|---|
| Who manages the money | You or your adviser | The insurer |
| Income amount | At least the CRA minimum; you can take more | Fixed payments set when you buy |
| Access to capital | Lump sums at any time (taxable) | Usually none after purchase |
| Investment risk | You keep it | The insurer carries it |
| Tax withheld when RRSP money moves in | None on a direct transfer | None on the purchase |
How to plan your conversion
The best time to plan is a few years before 71. Here is a simple sequence:
- List all your RRSPs and decide where the RRIF will be held. Moving everything to one institution makes the minimum easier to track.
- Choose your investments inside the RRIF. A RRIF can hold GICs, funds, ETFs, and stocks, just like an RRSP. See our guide to the best GICs if you want guaranteed returns for the next few years of withdrawals.
- Decide whether to use your spouse's age for the minimum.
- Set the payment schedule: monthly, quarterly, or once a year.
- Look at your total income. RRIF withdrawals count toward the Old Age Security recovery threshold, and money you do not need can go into a TFSA. Our TFSA guide explains how contribution room works at any age.
If you are still a few years from 71 and torn between saving in an RRSP or a TFSA, compare both with the RRSP vs TFSA calculator.
Conclusion
You must convert, withdraw, or annuitize your RRSP by December 31 of the year you turn 71. In a RRIF, your yearly minimum is the January 1 value multiplied by the CRA factor for your age, which ranges from 5.28% at 71 to 20.00% from 95 as of October 20, 2026. No tax is withheld on the minimum, but every withdrawal is taxable. Plan your conversion, your spouse's age election, and your other income together, a few years ahead.
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Frequently asked questions about RRIF withdrawals
When do I have to convert my RRSP to a RRIF?
You have until December 31 of the year you turn 71 to withdraw your RRSP, transfer it to a RRIF, or buy an annuity. For someone born in 1955, that is December 31, 2026. You can open a RRIF earlier if you need income before 71. Our RRSP guide covers the rules that apply while your RRSP is still open.
How is the RRIF minimum withdrawal calculated?
The CRA sets the minimum as the fair market value of your RRIF on January 1, multiplied by a factor tied to your age at the start of the year. Before 71, the factor is 1 divided by (90 minus your age). From 71, it comes from a fixed table, starting at 5.28% at 71 and rising every year, as of October 20, 2026. See more retirement planning articles in our retirement section.
Do I have to take a minimum in the first year?
No. The CRA requires the first minimum payment in the year after the year you set up the RRIF. If you convert your RRSP in December 2026, your first required minimum is in 2027. That gives your savings another year of tax-sheltered growth. Plan the tax on that first payment with the income tax calculator.
Is tax withheld on RRIF withdrawals?
No tax is withheld on the minimum amount, but it is still taxable income. On anything above the minimum, federal withholding ranges from 10% to 30% depending on the amount, with lower federal rates in Quebec plus Revenu Québec withholding. You settle the real amount when you file your return. Our page on marginal tax rates shows how much tax each extra dollar costs.
Can I use my spouse's age for my RRIF minimum?
Yes. When you set up the RRIF, you can elect to base the minimum on the age of your spouse or common-law partner. If your partner is younger, the factor is lower and your required withdrawals shrink. You make this choice when you open the RRIF, so discuss it before you sign. Money you withdraw but do not need can go into a TFSA, as our TFSA guide explains.
Should I choose a RRIF or an annuity?
A RRIF keeps your investments and withdrawal pace in your hands, but the money can run out if returns are poor or you live a long time. An annuity pays a fixed income for life or a set term, but you usually give up access to the capital. Many retirees combine both, using a RRIF for flexibility and an annuity to cover basic expenses. Compare saving options before retirement with the RRSP vs TFSA calculator.
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