RRIF Payment Calculator
A Registered Retirement Income Fund (RRIF) is a plan designed to provide Canadians with a constant income flow through retirement. The property under a RRIF is created from a transfer of funds from an RRSP or another RRIF. The funds in a RRIF are tax-deferred. Amounts paid out of a RRIF are taxable on receipt.
It is mandatory that you convert all your RRSPs by December 31st in the year you turn 71. The latest you are allowed to take your first payment is December 31st in the year you turn 72, however, the payment must be at least the full annual minimum* amount.
Tax law stipulates that a minimum payment must be withdrawn from your RRIF each year and reported as income. *This minimum annual payment is taken from a schedule that is based on your age or the age of your spouse if younger.
For more information, including the factors used, please consult the following link to Canada Revenue Agency's website: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-retirement-income-fund-rrif.html Use this calculator to find out how much you may withdraw from your RRIF each year.
Calculation assumptions
This calculator uses the following assumptions:
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That you started your RRIF after 1992
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Using the Minimum required payments following start date rule (see definitions below) - that your payments will begin on January 1st of the year following the date you have entered as the Start Date. If you wish to delay or receive payments sooner, use the Minimum required payments starting immediately radio button and enter the appropriate date. Keep in mind that the Start Date you use should be no later than December 31 of the year you turn 71 in order that your minimum payment will begin in the year you turn 72.
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Using the Minimum required payments following start date rule option - that you will not elect to take payments in the year you open/start the RRIF since this would result in exceeding the minimum amount and would be subject to withholding taxes. If you do elect to take payments in the year you open/start the RRIF, please use the Fixed Payment Option on this calculator.
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That your RRIF payments happen at the beginning of each month with interest compounded annually.
Birth date
Enter your date of birth in Month/Day/Year format. Your age at the beginning of the year is calculated and displayed on the Report.
Start date
To have your payments begin on January 1st of the year following the date you have entered as the Start Date, use the Minimum required payments following start date radio button. If you wish to delay or receive payments sooner, use the Minimum required payments starting immediately radio button and enter the appropriate date. Keep in mind that the Start Date you use should be no later than December 31 of the year you turn 71 in order that your minimum payment will begin in the year you turn 72.
Initial investment amount
The initial investment you have placed (or will place) in your RRIF plan.
Interest rate
The annual percent you expect to earn on your investments. The actual rate of return is largely dependent on the type of investments you select. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
Fixed monthly payment
If you choose to calculate your RRIF distributions based on a fixed monthly payment, enter the payment amount here. If your payment is less than the minimum required at any time we increase it to the minimum amount for that period.
Fixed number of years
If you choose to calculate your RRIF distributions on a fixed number of years, enter the number of years here. If your payment is less than the minimum required at any time we increase it to the minimum amount for that period.