What Is a RRIF and When Do You Need One?
A Registered Retirement Income Fund (RRIF) is the account Canadians convert their RRSP into when they are ready to draw retirement income. You must convert your RRSP to a RRIF (or an annuity) by December 31 of the year you turn 71. Once converted, you must withdraw a minimum amount each year — this amount is set by the CRA and increases as a percentage of your account balance as you age.
RRIF withdrawals are fully taxable as income in the year you receive them. Your financial institution withholds tax on amounts above the annual minimum — 10% on amounts up to $5,000, 20% on $5,001 to $15,000, and 30% on amounts above $15,000. The minimum withdrawal itself has no withholding tax, though it is still added to your taxable income and taxed on your return.
RRIF Minimum Withdrawal Rates by Age
The minimum percentage you must withdraw from your RRIF increases each year with your age. At age 71, the rate is 5.28% of your January 1 balance. By age 80 it is 6.82%, by age 85 it is 8.51%, and by age 90 it reaches 11.92%. After age 95 the rate is fixed at 20%. These minimums were designed so that most of the RRIF is drawn down over your lifetime, ensuring the government eventually collects taxes on funds that grew tax-deferred in your RRSP.
Using Your Spouse's Age to Reduce Minimums
If your spouse is younger than you, you can elect to use their age to calculate your RRIF minimum withdrawal. This results in a lower mandatory withdrawal — keeping more money in the account longer to continue growing tax-deferred. This election must be made when the RRIF is set up and cannot be changed afterward. For couples with a significant age difference, this strategy can meaningfully reduce taxes paid over the life of the RRIF.
Frequently Asked Questions
Can I withdraw more than the RRIF minimum?
Yes — you can withdraw any amount above the minimum at any time. Many retirees withdraw more than the minimum to fund living expenses, to convert funds to TFSA room (if available), or to draw down the RRIF before it triggers large OAS clawbacks in later years. Larger withdrawals trigger withholding tax, but this is simply a prepayment of the income tax you will owe at filing time. Some retirees intentionally withdraw more in early retirement (ages 65–71) when their income is lower to reduce future forced minimums.
What happens to my RRIF when I die?
If you have a surviving spouse or common-law partner named as beneficiary, the RRIF can be transferred to their RRSP or RRIF tax-free. If the beneficiary is a financially dependent child or grandchild, there are also special rollover options. If the beneficiary is anyone else (such as an adult child), the full RRIF balance is added to your income in the year of death and taxed at your marginal rate — which can result in a large tax bill. Naming a spouse as beneficiary and keeping the designation up to date is critical RRIF estate planning.
Does a RRIF withdrawal affect my OAS or GIS?
Yes — RRIF withdrawals count as income for both the OAS clawback and GIS calculation. If your RRIF withdrawals push your income above $90,997 (2026 threshold), you will begin losing OAS at 15 cents per dollar. If you have low income and receive GIS, every $2 of RRIF withdrawal reduces your GIS by $1. This is why strategic RRIF drawdown planning — potentially drawing down more before 71, converting to TFSA, or splitting with a spouse — is a valuable retirement planning exercise.
Can I convert my RRIF back to an RRSP?
No — once you convert an RRSP to a RRIF, you cannot convert it back. You also cannot make new contributions to a RRIF. The only direction of movement is out of the RRIF (as taxable withdrawals). This is why many financial advisors recommend delaying the RRSP-to-RRIF conversion as long as possible — up to the mandatory age 71 deadline — to maximize tax-deferred growth. If you converted early and want to stop minimum withdrawals, the only option is to purchase a life annuity with the RRIF funds.
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