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RRIF Prescribed Factors

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RRSPs RRIFs and TFSAs -> RRIF Minimum Annual Withdrawals -> RRIF minimum withdrawal factors

Prescribed Factors for Minimum Annual Withdrawal From a RRIF

See the RRIF Minimum Annual Withdrawals article for all the rules around minimum withdrawals. The table below shows the prescribed factors for the minimum annual withdrawals, and the % increase to the factors each year.

The Federal 2015 Budget, which received Royal Assent June 23, 2015, reduced the minimum withdrawal factors for age 71+, for both post-1992 and pre-1993 RRIFs, to the amounts shown below.  RRIF holders who at any time in 2015 withdraw more than the reduced 2015 minimum amount will be permitted to re-contribute the excess (up to the amount of the reduction in the minimum withdrawal amount provided by this change) to their RRIFs.  Re-contributions will be permitted until February 29, 2016 and will be deductible for the 2015 taxation year.  Similar rules will apply to those receiving annual payments from a defined contribution RPP or a PRPP.

The first table is for all RRIFs, LIFs, and LRIFs, up to age 70.  These factors do not change based on the Federal 2015 Budget, because they are calculated as 1/(90-age).  "Age" refers to the age of the annuitant at the beginning of the calendar year.  The factor is multiplied by the market value of the RRIF holdings at the beginning of the year.

Note that, although we now show the RRIF factors for the formula 1/(90-age) rounded to 6 decimals, no rounding is specified in the Income Tax Act or Regulations.  Thus, to calculate the annual minimum withdrawal, the formula should be 1/(90-age) x RRIF market value, and the result would be rounded to 2 decimals.  The difference between using 1/(90-age) and the RRIF factor rounded to 6 decimals is less than 10 cents per year when the RRIF market value is $200,000.

Table of RRIF Factors

Age RRIF
Factor
55 0.028571
56 0.029412
57 0.030303
58 0.031250
59 0.032258
60 0.033333
61 0.034483
62 0.035714
63 0.037037
64 0.038462
65 0.040000
66 0.041667
67 0.043478
68 0.045455
69 0.047619
70 0.050000

The next table shows the factors for age 71+ for RRIFs, LIFs and LRIFs.  Prior to the change from the Federal 2015 Budget, plans that were set up prior to 1993 had lower RRIF factors than plans that were set up after 1992.  Starting in 2015, all plans use the new factors.

 

Table of RRIF Factors

  All RRIFs 2015+  

Post-1992 RRIFs
prior to 2015

 

Pre-1993 RRIFs
prior to 2015

Age RRIF
Factor
  RRIF
Factor
  RRIF
Factor
71 0.0528   0.0738   0.0526
72 0.0540   0.0748   0.0556
73 0.0553   0.0759   0.0588
74 0.0567   0.0771   0.0625
75 0.0582   0.0785   0.0667
76 0.0598   0.0799   0.0714
77 0.0617   0.0815   0.0769
78 0.0636   0.0833   0.0833
79 0.0658   0.0853   0.0853
80 0.0682   0.0875   0.0875
81 0.0708   0.0899   0.0899
82 0.0738   0.0927   0.0927
83 0.0771   0.0958   0.0958
84 0.0808   0.0993   0.0993
85 0.0851   0.1033   0.1033
86 0.0899   0.1079   0.1079
87 0.0955   0.1133   0.1133
88 0.1021   0.1196   0.1196
89 0.1099   0.1271   0.1271
90 0.1192   0.1362   0.1362
91 0.1306   0.1473   0.1473
92 0.1449   0.1612   0.1612
93 0.1634   0.1792   0.1792
94 0.1879   0.2000   0.2000
95+ 0.2000   0.2000   0.2000

The RRSP/RRIF calculator includes the new factors, with an option to use the old factors.  If you have a RRIF that was set up prior to 1993 and you want to use the old factors, use the RRIF calculator.

Tax Tip:  Use our RRSP/RRIF calculator to help you project your RRIF withdrawals for the next 40 years.

 

Revised: August 11, 2015

 

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