TaxTips.ca - RRSP/RRIF Calculator

| Fixed Withdrawal | Max Withdrawal | Help |

Fixed Annual Withdrawal
Enter amounts in yellow cells, use tab key or your mouse to move to next cell, click on Calculate button. Withdrawals are assumed to be made at the end of each year.
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 at beginning of year
Age at Dec 31 prior year end
Current year
Convert to RRIF in year in which you turn (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 does not work for RRIFs started in 1992 or earlier. 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. For locked-in RRIFs, maximum withdrawals are governed by federal or provincial legislation, and are not part of these calculations.
As per 2008 Economic and Fiscal Statement, 2008 minimum withdrawal is reduced by 25%. As per 2007 Federal budget, the minimum withdrawal is waived in 2008 for RRIF owners who turned 70 in 2007.
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

| Fixed Withdrawal | Max Withdrawal | Help |

Maximum Withdrawal for X Years
Enter amounts in yellow cells, use tab key or your mouse to move to next cell, click on Calculate button. 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
Current year
Convert to RRIF in year in which you turn (or turned)						max age is 71
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 does not work for RRIFs started in 1992 or earlier. 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. For locked-in RRIFs, maximum withdrawals are governed by federal or provincial legislation, and are not part of these calculations.
As per 2008 Economic and Fiscal Statement, 2008 minimum withdrawal is reduced by 25%. As per 2007 Federal budget, the minimum withdrawal is waived in 2008 for RRIF owners who turned 70 in 2007.
Age prior Dec 31	RRIF factor	Estimated rate of return	Rate of return used	Return on investments	Minimum withdrawal	Actual withdrawal	Ending balance

| Fixed Withdrawal | Max Withdrawal | Help |

RRSP/RRIF Withdrawal Calculator

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 ones.

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.

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.

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.

	For a RRIF started in 1993 or later, the prescribed factor for minimum withdrawals is 1/(90-age), but only while the annuitant is under 71 years old.

	This calculator does not apply to RRIFs started prior to 1993 - use the RRIF Calculator instead.

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.