RRIF Minimum Withdrawal Rates 2026: What You Are Required to Take (and How to Manage It)

Every Canadian with an RRSP eventually​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ reaches the same hard deadline: December 31 of the year you turn 71. After that date, your RRSP must become a Registered Retirement Income Fund, and the CRA begins dictating how much you take out each year whether you need the money or not. The rates start at 5.28% at age 71 and ratchet up every year, reaching 6.82% at age 80 and accelerating past 11% by your early 90s. Miss the conversion deadline entirely and the CRA treats your entire RRSP balance as taxable income in a single year. That is the kind of tax bill that can define an estate.

Most people treat RRIF minimum withdrawals​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ as a tax burden to minimize. That framing is backwards. Taking the minimum is actually the most tax-efficient path for many retirees, particularly those with meaningful TFSA room remaining. What follows is a complete breakdown of the 2026 rate table, the spouse age election most couples overlook, how RRIF withdrawals interact with OAS, and the withdrawal sequencing that leaves more after-tax wealth at every age.

The 2026 RRIF Rate Table and the Age 71 Conversion Deadline

The minimum withdrawal percentage is​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ applied to your RRIF’s fair market value on January 1 of each year. A $500,000 RRIF at age 71 requires a withdrawal of at least $26,400. That same balance at age 80 requires $34,100. By age 90, the mandatory withdrawal on a $500,000 RRIF exceeds $59,600 per year. The rates are set by CRA regulation and have not changed for the 2026 tax year.

The conversion itself is not a taxable​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ event. You transfer RRSP holdings directly into your RRIF, in kind, without triggering any disposition. Your XEQT units move over exactly as they are. Withholding tax and income reporting only kick in when you actually take cash out. The first mandatory withdrawal from a RRIF established at age 71 is not due until the following calendar year, which gives you a brief window to set up your payment schedule without being rushed.

If you miss the December 31 deadline,​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ the CRA treats your entire RRSP balance as taxable income in that year. On a $400,000 RRSP, you could be looking at a combined federal and provincial tax bill north of $150,000. There is no grace period and no appeal mechanism. Set a calendar reminder and talk to your institution before October of the year you turn 71.

The Spouse Age Election: A Free Rate Reduction Couples Consistently Miss

When you open a RRIF, your financial​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ institution will ask whether you want to use your own age or your spouse’s age to calculate the minimum withdrawal. If your spouse is younger, using their age can meaningfully lower your mandatory withdrawals for the rest of your life. This is a one-time, permanent election made at RRIF opening. You cannot change it later.

The numbers are significant. Canadian​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ retirement planning research confirms that if one spouse is 71 and the other is 65, the applicable RRIF minimum drops from 5.28% to approximately 4.00%, simply by selecting a different option on the account application. On a $600,000 RRIF, that difference is $7,680 per year in lower forced income: $24,000 required versus $31,680. Over a decade, the compounding impact on tax rates and OAS eligibility is substantial.

A couple with a six-year age gap can​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ reduce their annual mandatory RRIF withdrawal by more than 1.25 percentage points permanently, without any complex planning. It requires only one conversation at account opening. It is already built into every financial institution’s RRIF system.

The practical effect is particularly​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ powerful for couples trying to keep total income below the OAS clawback threshold. Lower mandatory withdrawals mean more flexibility to time discretionary withdrawals in lower-income years, more room to contribute excess RRIF cash to TFSAs, and a longer period of tax-sheltered compounding inside the RRIF itself. If your spouse is even three to five years younger, run the numbers before you sign anything at your bank.

The OAS Clawback Trap: When Bigger Withdrawals Shrink Your Actual Cheque

Old Age Security income is clawed back​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ at 15 cents for every dollar of net income above a threshold that adjusts for inflation each year. For 2026, that threshold falls in the $90,000 to $95,000 net income range. Once your net income crosses that line, you begin repaying OAS through your tax return, and the effective marginal tax rate on income in that band rises sharply.

For a retiree with CPP income of $12,000,​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ a survivor pension of $20,000, and a RRIF generating $60,000 in mandatory withdrawals, total reported income is already at $92,000. Adding an extra $10,000 in discretionary RRIF withdrawals to “get money out while the tax rate is lower” triggers $1,500 in OAS recovery tax on top of the regular marginal rate. In Ontario at that income level, the combined effective rate on that extra $10,000 can easily exceed 45%. The instinct of taking more now to avoid a bigger tax bill later reverses completely under those conditions.

The interaction also matters for TFSA​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ strategy. Withdrawals from a TFSA are not included in net income for OAS testing purposes. A retiree who needs $75,000 in after-tax spending can often structure withdrawals so that RRIF income covers the mandatory minimum, TFSA top-ups absorb any surplus, and TFSA withdrawals fund discretionary spending without affecting the OAS calculation at all. The sequencing is everything.

For a deeper look at how the clawback​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ thresholds work and how to calculate your personal exposure, the OAS Clawback Threshold 2026 guide covers the full mechanics for XEQT holders.

Minimum vs. Aggressive Withdrawal: What a Real Case Study Shows

There is a persistent belief among Canadian​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ retirees and their advisors that taking more money out of a RRIF earlier is the conservative choice. You pay tax now, at presumably lower rates, and move money into a taxable account or TFSA where it will avoid the terminal tax hit at death. The logic sounds reasonable. The actual numbers undermine it.

A case study published in the Weekend​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ Reading financial column examined a widowed retiree named Susan, age 80, with $1.2 million in a RRIF, $300,000 in a TFSA, and $1.2 million in a taxable account from the sale of the family home. Her accountant had advised increasing RRIF withdrawals well above the minimum to reduce the RRIF balance and the eventual tax bill at death. The analysis compared two scenarios projected to age 85: aggressive excess withdrawals versus sticking to the CRA minimum.

At age 80, a 6.82% minimum withdrawal​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ on a $1.2 million RRIF generates approximately $81,840 per year, enough to cover spending, pay tax, and top up a TFSA, with no need to touch the taxable account at all. The RRIF’s shelter continues compounding undisturbed.

The results: the minimum withdrawal​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ strategy produced an estate before tax of $3,950,593 versus $3,498,641 for the aggressive approach, a difference of roughly $452,000. The minimum strategy also carried a lower lifetime personal tax total ($384,351 versus $722,285) because more capital stayed sheltered inside the RRIF longer, compounding without the annual tax friction that hits a taxable account through dividends, interest, and realized capital gains. Under the aggressive scenario, excess withdrawals moved money into the taxable account where it generated ongoing tax drag every year. That drag, compounded over five to ten years, eroded the perceived benefit of paying tax earlier.

The counterintuitive finding: keeping​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ withdrawals at the minimum left far more pre-tax estate value, despite the RRIF growing larger and incurring a higher terminal tax bill. The tax paid on sheltered compounding at death is cheaper than the tax drag paid continuously on a taxable account during life. This outcome holds in most cases where the retiree has meaningful TFSA room available as a landing pad for RRIF withdrawals they do not need to spend immediately.

RRIF and TFSA Sequencing for XEQT Holders in Retirement

For Canadians holding XEQT across multiple​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ account types in retirement, the withdrawal order shapes both current tax rates and long-term estate outcomes. The logic flows as follows.

Take your RRIF minimum first. This is​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ non-negotiable, and it is also strategically correct. Any amount above the minimum triggers withholding tax at source, whereas the minimum itself is paid to you in full, with tax owed at filing rather than deducted in advance. Once your minimum is in hand, assess whether it covers your actual after-tax spending needs. For most retirees in their early 70s with a reasonably sized RRIF, the minimum will not fully cover spending at first, but the rising withdrawal rates mean it becomes more adequate as the years pass.

Any RRIF withdrawal you receive but​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ do not need to spend should go directly into your TFSA if you have contribution room. TFSA contributions made from RRIF withdrawals do not reduce your OAS-eligible income (you already reported the RRIF income when it came out), but the capital that goes in will compound tax-free from that point forward. The 2026 TFSA annual limit is $7,000, and cumulative room since the account’s 2009 inception reaches $109,000 for anyone who has been eligible throughout. XEQT held inside a TFSA continues its automatic global diversification and rebalancing without generating a T3 slip or affecting any income tests.

If your RRIF minimum does not fully​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ cover spending, take the shortfall from your TFSA before reaching for excess RRIF withdrawals. TFSA withdrawals add zero to your net income and cannot push you over the OAS clawback threshold. Only after exhausting comfortable TFSA capacity does it make sense to take discretionary RRIF withdrawals above the minimum, and even then, model the OAS impact before you execute. Taxable accounts sit last in this sequence. Selling XEQT units in a non-registered account triggers capital gains reporting and can stack awkwardly with RRIF income in the same year.

For a detailed look at how this sequencing works across all account types at different portfolio sizes, the XEQT retirement withdrawal strategy guide walks through the full order of operations.

Early RRIF Conversion: When Converting Before 71 Makes Sense

You can convert an RRSP to a RRIF as​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ early as age 55. The question is whether doing so serves your tax plan, not whether it is technically permitted.

Partial conversion is often the more​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ practical tool. Converting a portion of your RRSP into a RRIF before age 65 can unlock two benefits simultaneously. At age 65, RRIF withdrawals qualify as eligible pension income for the purposes of the $2,000 pension income tax credit and pension income splitting with a spouse. Without at least some RRIF or annuity income, you cannot access these credits. Pension income splitting lets a higher-income spouse shift up to 50% of eligible RRIF income to a lower-income spouse, which can reduce combined household tax substantially in any year when there is a meaningful income gap between partners.

Early conversion also suits retirees​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ who stop working well before 71 and want to draw down their registered accounts gradually during the window between retirement and mandatory RRIF age. Withdrawing $30,000 to $50,000 per year from an RRSP at a relatively low marginal rate during your 60s is generally preferable to being forced to take much larger amounts from a grown RRIF at age 75 or 80 at a higher rate. The goal is income smoothing across a lifetime, and the earlier you start thinking about it, the more tools you have available.

One practical note: many institutions​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ charge withdrawal fees on RRSP accounts but not on RRIF accounts. Converting a portion early can eliminate those fees on regular income draws while leaving remaining RRSP assets to compound without mandatory withdrawal pressure. Check your institution’s fee schedule before dismissing early partial conversion as unnecessary.

Withholding Tax on RRIF Withdrawals and the 60-Day Spacing Approach

Withholding tax on RRIF withdrawals​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ applies only to amounts above the minimum. If you take exactly your CRA minimum, no withholding is deducted at source. Tax on that income is still owed at filing, but the full cash amount lands in your account during the year. This is a meaningful cash-flow advantage compared with RRSP withdrawals, which face withholding on every dollar regardless of amount.

For amounts above the minimum, the CRA​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ withholding brackets are: 10% on amounts up to $5,000, 20% on $5,001 to $15,000, and 30% on anything above $15,000. At a traditional bank that treats all withdrawals within a calendar year cumulatively, taking $48,000 in total excess withdrawals over a year could result in effective withholding close to 26% on the full amount.

At Wealthsimple, withdrawals spaced​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ at least 60 days apart are not treated as cumulative for withholding purposes. A retiree taking four $5,000 withdrawals spaced 60 days apart pays 10% withholding on each. The same $48,000 in annual excess withdrawals structured this way results in effective withholding closer to 15.8% rather than 26%, based on published analysis of the mechanics. That is a meaningful cash-flow difference that, reinvested inside a TFSA or RRIF, compounds over a multi-decade retirement. Questrade also applies withholding on a per-withdrawal basis rather than cumulatively. Confirm the specific policy with your brokerage before structuring a withdrawal schedule around it, as these practices can change.

Your Pre- and Post-Conversion RRIF Checklist

Before you reach age 71, three decisions​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ need to be made deliberately rather than left to the defaults your financial institution assumes. The spouse age election must be made at account opening. If you want to use a younger spouse’s age, confirm this before the RRIF is established. Your institution will not prompt you a second time.

Alongside the age election, confirm​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ whether your RRSP is at the same institution as your planned RRIF. A direct in-kind transfer avoids triggering any disposition of your XEQT units, avoids transfer fees in most cases, and keeps your investment exposure intact through the conversion. If you are moving from a bank RRSP to a self-directed RRIF at Wealthsimple or Questrade, initiate the transfer at least two to three months before your December 31 deadline. Transfers between institutions have been known to extend into January if initiated too close to year end.

Once converted, your annual RRIF review​‌‌​‌​‌​​‌‌​​​‌​​‌‌‌‌​​​​‌‌​​‌​‌​‌‌‌​​​‌​‌‌‌​‌​​‍​​​​​​​​​‌‌‌​​​​​‌‌​‍‌‌​‌​‌​‌​​​‌​​​‌​​​‌‌​‌​‌​​​‌‌‌ should cover three things. Confirm that your minimum withdrawal has been correctly calculated against your January 1 balance. Assess whether any surplus above spending needs should go to your TFSA before you consider taxable accounts. Check your projected total income for the year against the OAS clawback threshold to catch any income stacking before it shows up as a surprise on your tax return.

For XEQT holders specifically, the RRIF transition requires almost no investment changes. Your units transfer in kind, continue to rebalance automatically across their roughly 45% US equities, 25% Canadian equities, 25% international developed, and 5% emerging markets exposure, and generate T3 distributions that are reported as income when withdrawn. The portfolio management side of a RRIF is genuinely simple with an all-in-one ETF. The complexity sits entirely on the withdrawal sequencing and income-planning side. Getting that sequencing right, particularly the discipline of taking the minimum before touching TFSAs and avoiding unnecessary excess withdrawals that trigger OAS clawback, is worth more over a 20-year retirement than almost any shift in asset allocation. For more on how a single all-in-one ETF handles the investment side of a full retirement, see how much XEQT you need to retire.

Frequently Asked Questions

What happens if I don’t convert my RRSP to a RRIF by December 31 of the year I turn 71? The CRA deregisters your RRSP and treats the entire balance as taxable income in that calendar year. On a $300,000 RRSP, combined federal and provincial tax could easily exceed $100,000 depending on your province and other income. There is no appeal or exception, so conversion well before the deadline is essential.

Can I use my younger spouse’s age to lower my RRIF minimum withdrawal rate? Yes. The spouse or common-law partner age election is available to any RRIF holder at the time of account opening. If your spouse is five or more years younger, it can reduce your mandatory withdrawal rate by one percentage point or more each year. This is a permanent election that cannot be changed after the RRIF is established, so it must be made before you sign the paperwork.

Does a RRIF minimum withdrawal count toward the OAS clawback threshold? Yes. RRIF withdrawals are reported as income on your T1 return and are included in the net income figure used for OAS recovery tax calculations. A minimum RRIF withdrawal combined with CPP and any pension income can push some retirees close to or above the clawback threshold, which is why TFSA withdrawals, excluded from net income, are the preferred source of supplemental spending once mandatory minimums are covered.

Is withholding tax deducted from my RRIF minimum withdrawal? No. CRA withholding tax applies only to RRIF amounts withdrawn above the annual minimum. The minimum is paid to you in full, with tax settled at filing time rather than deducted at source. Any excess you take is subject to withholding at 10%, 20%, or 30% depending on the size of each withdrawal, and the 60-day spacing approach at brokerages like Wealthsimple can reduce your effective withholding rate on those excess amounts meaningfully.