Mandatory RRIF Withdrawals at Age 71: What You Need to Know

Learn about minimum RRIF withdrawal rules starting at age 71 and how much you must take out annually.

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At age 71, you must convert your Registered Retirement Savings Plan (RRSP) into a Registered Retirement Income Fund (RRIF) and start withdrawals by December 31st. The minimum withdrawal amount is calculated based on a government-specified percentage of your RRIF's value at the beginning of the year. For those 71 years old, the minimum withdrawal rate is 5.28%. For example, if your RRIF is valued at $100,000, your minimum withdrawal would be $5,280.

FAQs & Answers

  1. What happens to my RRSP when I turn 71? You must convert your RRSP into a RRIF and begin withdrawals by December 31.
  2. How is the minimum withdrawal amount calculated? The minimum withdrawal is based on a percentage of your RRIF's value at the start of the year.
  3. Can I withdraw more than the minimum from my RRIF? Yes, you can withdraw any amount above the minimum requirement at any time.
  4. What if I don't withdraw from my RRIF? Failure to withdraw the minimum may result in significant tax penalties on the required amount.

Watch More

For more insights on retirement income strategies, check out our comprehensive guides on managing your RRSP and maximizing your RRIF withdrawals.

  1. What Happens to Your RRSP When You Turn 71? Discover the essential steps for your RRSP at age 71, including conversion options and tax implications.
  2. Should You Withdraw Money from Your RRSP Before Turning 71? Key Considerations Explore the benefits and considerations of withdrawing from your RRSP before age 71 to optimize your financial strategy.
  3. Understanding the 4% Retirement Rule: Your Guide to Sustainable Withdrawals Learn how the 4% retirement rule helps you withdraw funds wisely from savings for a secure retirement.
  4. What is the 4% Rule for Retirement Planning? Discover the 4% Rule for retirement savings and how to ensure your funds last while enjoying your retirement.
  5. Understanding the 5-Year Rule for Retirement Accounts Learn about the 5-year rule for Roth IRAs and how it impacts your tax-free withdrawals in retirement.