RRIF & OAS Withdrawal Optimizer
One picture of your withdrawal year: the RRIF minimum you must take, the approximate tax on your total income, how close you are to the OAS clawback, and how much room you have before the next tax bracket.
Using your saved retirement profile
Loading your locally saved information…
Loading your saved profile…
How this optimizer thinks
Retirement withdrawals interact with three thresholds at once. First, your RRIF has a CRA minimum that must come out each year. Second, every withdrawn dollar is taxable income that moves you through federal and provincial brackets. Third, once net income passes the OAS recovery threshold, each extra dollar also costs 15 cents of OAS. This tool lines all three up so you can see which one you would hit first.
What it does not do
It estimates a single tax year using simplified math: progressive brackets plus the federal basic personal amount. It does not model the age or pension income credits, provincial credits or surtaxes, GIS, dividends, capital gains, pension splitting, or multi-year strategies — those belong in a conversation with a qualified professional.
Frequently asked questions
What is a RRIF?
A Registered Retirement Income Fund (RRIF) is a registered account that pays you income in retirement. It's what an RRSP typically becomes when you're ready to draw an income: the money stays tax-sheltered and continues to grow, but you must withdraw a minimum amount each year, and those withdrawals are taxable.
What's the difference between a RRIF and an RRSP?
An RRSP is a savings account you contribute to during your working years; contributions are tax-deductible. A RRIF is the income stage: you generally can’t contribute new money to a RRIF, and instead of saving, you must withdraw a minimum amount every year. Both keep your investments tax-sheltered until you withdraw. Most people convert their RRSP to a RRIF when they want to start drawing retirement income.
When must I convert my RRSP to a RRIF?
You must convert your RRSP by December 31 of the year you turn 71. By that deadline you must either convert it to a RRIF, use it to buy an annuity, or withdraw the funds (which would be fully taxable that year). Most people choose a RRIF. You can also convert earlier than 71 if you want to start drawing income sooner. See CRA: Options for your RRSPs.
When do RRIF withdrawals start?
You don’t have to take a minimum in the year you open the RRIF, but you must take at least the minimum in every year after that. So if you convert in the year you turn 71, your first required minimum withdrawal is in the year you turn 72. You can choose to take more than the minimum, or start withdrawals earlier, at any time. See CRA: Receiving income from a RRIF.
How are RRIF minimum payments calculated?
The minimum is your RRIF balance on January 1 multiplied by a prescribed percentage factor for your age. Below age 71 the factor is 1 ÷ (90 − your age). From 71 onward, CRA sets the factors in a published table — for example about 5.28% at 71, rising each year to 20% at age 95 and older. If you have a younger spouse, you can elect to base the minimum on their age, which lowers it. See CRA: Prescribed factors.
Is there a maximum limit on RRIF withdrawals?
No. A RRIF has a required minimum each year but no maximum — you can withdraw as much as you want, though larger withdrawals mean more taxable income and may trigger the OAS clawback or a higher tax bracket. Note that a LIF (Life Income Fund), which holds locked-in pension money, does have a maximum set by pension rules.
Can I add new money to my RRIF?
No. You can't make new contributions to a RRIF. You can only transfer in funds from another registered plan such as an RRSP or another RRIF. If you still want to contribute new money and have RRSP room, you'd contribute to an RRSP (allowed up to the end of the year you turn 71).
What happens to my investments when I convert to a RRIF?
Your investments generally carry over unchanged. A RRIF can hold the same investments as an RRSP — stocks, bonds, ETFs, mutual funds, GICs — so converting doesn't force you to sell anything. The account simply switches from contribution mode to income mode, and you begin taking the required minimum withdrawals.
Can I transfer my RRIF to a TFSA?
Not directly. You can't move money straight from a RRIF into a TFSA. You'd have to withdraw from the RRIF (which is taxable), then contribute to your TFSA if you have available room. Some retirees do this deliberately to shift money into a tax-free account, but the withdrawal is taxed and counts toward the OAS clawback in the year you take it.