TaxTips.ca
Canadian Tax and
Financial Information
RRSP/RRIF Withdrawal Calculator

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!      Internet Explorer - Use compatibility view for calculators to work properly!
TaxTips.ca Calculators -> RRSP/RRIF Withdrawal Calculator instructions

 

 

 

Fixed Annual Withdrawal        
Type amounts into yellow cells. Amounts are recalculated automatically when you hit enter, tab out of a cell, click elsewhere with the mouse, or click the Calculate button (top of screen).
Withdrawals are assumed to be made at the end of each year.
       
Fixed annual withdrawals start immediately, not just after conversion to a RRIF.  A "desired withdrawal" amount (enter as positive amount) can be entered in any year, to override the fixed annual withdrawal.
Desired withdrawal of zero will only work if minimum withdrawal is zero.
Inflation factor will not be applied to amounts entered in desired withdrawal column.
       
A revised estimated rate of return can be entered in any year.  This revised rate of return will be used until a different estimated rate of return is entered for a subsequent year.        
Balance in RRSP or RRIF at beginning of year
Age at Dec 31 prior year end, or younger spouse's age if you have elected to use it
See our article about using the age of a younger spouse - right-click to open link in a new tab or window.
Convert to RRIF in year in which you turn (or turned), or your spouse turns or turned max age is 71
Estimated rate of return
What amount would you like to withdraw annually?
What inflation amount would you like to apply to your annual withdrawal?
This calculator uses the new RRIF factors - would you prefer to use the old factors?
This calculator uses the new RRIF factors brought in by the Federal 2015 Budget.  The new factors apply to all RRIFs, LIFs, and LRIFs, no matter when the plan was set up.  To use previous factors, indicate this above - however, the previous factors are no longer applicable.
Minimum withdrawal will be used if it exceeds desired withdrawal, once RRSP is converted to a RRIF.
Inflation factor will not affect minimum withdrawal.
For locked-in RRIFs, maximum withdrawals are governed by federal or provincial legislation, and
are not part of these calculations.
       
Age prior
Dec 31
 RRIF
factor 
 Estimated
rate of
return 
 Rate of
return
used 
Return on
investments
Desired
withdrawal
Minimum
withdrawal
Actual
withdrawal
Ending
balance
       
Maximum Withdrawal for X Years    
Type amounts into yellow cells. Amounts are recalculated automatically when you hit enter, tab out of a cell, click elsewhere with the mouse, or click the Calculate button (bottom of screen).
Withdrawals are assumed to be made at the end of each year.
   
A revised estimated rate of return can be entered in any year.  This revised rate of return will be used until a different estimated rate of return is entered for a subsequent year.  
Balance in RRSP at beginning of year
Age at Dec 31 prior year end, or younger spouse's age if you have elected to use it
See our article about using the age of a younger spouse - right-click to open link in a new tab or window.
Convert to RRIF in year in which you turn (or turned), or spouse turns (or turned) max age is 71
Start making withdrawals at age
Estimated rate of return
Show the maximum withdrawal for the money to last years
What inflation amount would you like to apply to your annual withdrawal?
This calculator uses the new RRIF factors - would you prefer to use the old factors?
This calculator uses the new RRIF factors brought in by the Federal 2015 Budget.  The new factors apply to all RRIFs, LIFs, and LRIFs, no matter when the plan was set up.  To use previous factors, indicate this above - however, the previous factors are no longer applicable.
Minimum withdrawal will be used if it exceeds desired withdrawal, once RRSP is converted to a RRIF.
This will reduce the # of years the money will last.  Inflation factor will not affect minimum withdrawals.
For locked-in RRIFs, maximum withdrawals are governed by federal or provincial legislation, and
are not part of these calculations.
 
Age prior
Dec 31
 RRIF
factor 
 Estimated
rate of
return 
 Rate of
return
used 
Return on
investments
Minimum
withdrawal
Actual
withdrawal
Ending
balance
 
RRSP/RRIF Withdrawal Calculator Help
The RRSP/RRIF calculator has 2 different types of calculators which can be chosen by selecting the link at the top for:  
Fixed Withdrawal
Max Withdrawal
  These 2 calculators are NOT linked to each other - what you input into one of them does not change the numbers in the other one.
Income tax
RRSP and RRIF withdrawals are taxable.  The withdrawals shown are before-tax amounts.
Starting balance in RRSP
This should be the amount in the RRSP at December 31 of the prior year.
Age
Age is the age of the annuitant (owner) of the RRSP at December 31 of the prior year.
  If the annuitant plans to elect to use the age of a younger spouse to calculate minimum withdrawals, then the age of the younger spouse can be used in the calculator.
Convert to RRIF at age
  The latest that an RRSP can be converted to a RRIF is the year in which the taxpayer turns 71.  If a higher age than 71 is entered, age 71 will be used.  There is no minimum withdrawal in the year the RRIF is started.

If the RRSP has already been converted to a RRIF, enter the age at which this was done, or the younger spouse's age at that time.
Minimum annual withdrawals
  There is no withdrawal necessary in the year a RRIF (Registered Retirement Income Fund) is set up, but there are minimum amounts that must be withdrawn annually starting in the year after setup.  Unless certain types of annuities are held in the RRIF, the minimum withdrawal amount is calculated by multiplying the market value of the RRIF holdings at the beginning of the year by a "prescribed factor".  Locked-in Retirement Accounts (LIRAs) are subject to the same minimum withdrawals as RRIFs.  LIRAs are also subject to maximum allowable withdrawals, governed by either federal or provincial legislation.
  The prescribed factor for minimum withdrawals is 1/(90-age) while the annuitant is under 71 years old.
  This calculator uses the RRIF factors proposed by the Federal 2015 Budget, which, once the legislation has received Royal Assent, will apply to all RRIFs, LIFs, and LRIFs, no matter when the plan was set up.  To use previous factors, use our RRIF Withdrawal Calculator.
Estimated rate of return
  The estimated rate of return can be changed to show the effect on minimum withdrawals and how long the RRSP/RRIF investment will last.
Fixed annual withdrawal
  A desired annual withdrawal amount can be entered, but if it is less than the minimum required withdrawal, the minimum required withdrawal will be used in the calculator.
The desired withdrawal can be set to zero each year to eliminate withdrawals before the minimum annual withdrawals start.
 
Inflation rate
  An estimated inflation factor can be used, and the annual withdrawal will be increased by this factor each year.  The inflation factor can also be set to zero if desired.
Maximum withdrawal for X years
  This calculator allows you to specify how many years you want your RRSP/RRIF to last.  It will calculate the maximum payment per year in order for your RRSP/RRIF to last the specified number of years.
  If the period specified causes the payments to be lower than the minimum annual withdrawals, then the minimum annual withdrawals will be used.  This will reduce the number of years that the money will last.
  If your RRIF is locked-in, the maximum amount you may withdraw is governed by either federal or provincial legislation.  The maximum withdrawals in the calculator may exceed the maximums allowed by legislation.

Questions or comments on the RRSP/RRIF Withdrawal Calculator?  Please e-mail us at admin@taxtips.ca.
We normally reply within 1 business day - if you haven't received a reply, please check your junk mail.

Revised: June 10, 2016

 

Copyright © 2002 - 2016 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage.
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.