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Canada·Learn·Canada RRIF minimum withdrawals: age and prescribed factors
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Canada RRIF minimum withdrawals: age and prescribed factors

A RRIF pays a yearly minimum beginning after its establishment year, with the applicable factor based on age at the beginning of the year.

Source: CRA, Receiving income from a RRIFChecked ·2 min read
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Age 71
Prescribed factor: 0.0528 under subsection 7308(4).Income Tax Regulations, prescribed factors
Age 75
Prescribed factor: 0.0582 under subsection 7308(4).Income Tax Regulations, prescribed factors
Age 80
Prescribed factor: 0.0682 under subsection 7308(4).Income Tax Regulations, prescribed factors

Age at the beginning of the year

CRA states that the yearly minimum starts in the year after the RRIF is established. The carrier calculates the minimum using age at the beginning of each year. A holder can elect to use a spouse's or common-law partner's age. Withdrawals can exceed the minimum but cannot be less than it. CRA, yearly RRIF minimum (opens in a new tab).

The balance used for the minimum

The Income Tax Act defines the minimum using the fund property’s fair market value at the beginning of the year and the applicable prescribed factor, with separate treatment for certain annuity contracts and their payments. The spouse-age election must be made before the carrier makes any payment under the fund. Income Tax Act, RRIF minimum amount (opens in a new tab).

The prescribed age factors

For a fund outside the older qualifying retirement income fund category, subsection 7308(4) of the Income Tax Regulations prescribes factors of 0.0528 at age 71, 0.0582 at age 75 and 0.0682 at age 80. The age is measured in whole years at the beginning of the year. Income Tax Regulations, subsection 7308(4) (opens in a new tab).

For ages below 71, the same table specifies the factor as one divided by the difference between 90 and the age. Subsection 7308(3) contains a separate table for qualifying retirement income funds; subsection 7308(2) defines that older category as a fund entered into before 1993 that has accepted no property after 1992, or one holding only property transferred from such a fund. Income Tax Regulations, RRIF categories and factors (opens in a new tab).

Scope of this explanation

This is general information about Canada, not a withdrawal recommendation or personal tax advice. The factors quoted here are not an individual payment calculation. This page does not calculate tax on withdrawals or cover locked-in fund rules.

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