RRSPs RRIFs and TFSAs -> RRIF Minimum Annual Withdrawals -> RRIF minimum withdrawal factors
Prescribed Factors for Minimum Annual Withdrawal From a RRIF
Income Tax Act s. 146.3(1), Regulations s. 7308(3), (4)
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.
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.
Note that in all these tables, if the annuitant has elected to use the spouse's age to calculate the RRIF factor, then the spouse's age should be used as the age in these tables.
The first table is for all RRIFs, LIFs, and LRIFs, up to age 70. These factors did 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 - that is, the annuitant's age on December 31st of the prior calendar year. The factor is multiplied by the market value of the RRIF holdings at the beginning of the year.
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. "Age" refers to the age of the annuitant at the beginning of the calendar year - that is, the annuitant's age on December 31st of the prior calendar year. The factor is multiplied by the market value of the RRIF holdings at the beginning of the year.
The RRSP/RRIF calculator includes the new factors, with an option to use the old factors.
Tax Tip: Use our RRSP/RRIF calculator to help you project your RRIF withdrawals for the next 40 years.
Revised: November 26, 2018
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