Withdraw from your RRIF

In this article:

Overview

You can withdraw funds from your RRIF or spousal RRIF through your Wealthsimple account. A RRIF has a minimum amount you must withdraw each year, set by the government. We'll help you stay within this limit when you make a withdrawal.

It's important to withdraw your minimum amount by the end of each calendar year. The Canada Revenue Agency (CRA) requires us to make the withdrawal for you if you don't.

Find your minimum withdrawal amount

Your minimum withdrawal amount is determined for you by the Canadian government based on your age. You can reference this table from the CRA for benchmarks on how much you're required to withdraw at different ages.

To find your minimum withdrawal amount, follow these steps:

Web Wealthsimple app
  1. Log in to your Wealthsimple profile
  2. Select the Move tab
  3. Select Transfer money
  4. In the From field, select your RRIF or Spousal RRIF
  5. You'll see your minimum withdrawal amount
  1. Log in to the Wealthsimple app
  2. Tap the Move tab at the bottom of your screen
  3. Under Move money, tap Transfer money
  4. Select your RRIF as the source account
  5. Choose the destination for your withdrawal
  6. Tap Next
  7. Review how RRIF withdrawals work
  8. Tap Next
  9. You'll see your Yearly minimum remaining, which is the amount you must withdraw by the end of the calendar year

How to make a withdrawal

When you make a withdrawal from a RRIF, you can choose whether to withdraw your annual minimum amount or another amount within your limits. You must withdraw the minimum amount by the end of the calendar year. You may choose to withdraw up to the full account balance; however, any amount greater than your minimum will be subject to withholding tax.

You can make a one-time or recurring RRIF withdrawal depending on your account type:

  • Self-directed investing: You can only make a one-time withdrawal on the Wealthsimple app.
  • Managed: You can make a one-time or recurring withdrawal from your RRIF. You can only set up a recurring withdrawal on the web experience of Wealthsimple.

To make a withdrawal, follow these steps:

Web Wealthsimple app 
  1. Log in to your Wealthsimple profile
  2. Select the Move tab
  3. Select Transfer money
  4. In the From field, select your RRIF or Spousal RRIF
  5. In the To field, select your desired linked bank account
  6. Under Amount, select One-time, Installments, or Custom to specify an amount
    1. One-time will withdraw the full annual minimum amount in a one-time withdrawal. Withholding tax isn't applied.
    2. Installments will withdraw the annual minimum, but split into smaller payments depending on the selected frequency. Withholding tax isn't applied.
    3. Custom will allow you to modify your withdrawal amount, withholding tax, and frequency. The withholding tax amount cannot decrease below the minimum withholding tax rate.
  7. Select the Frequency for the withdrawal (applicable for Installments and Custom)
  8. The tooltip next to the withholding tax amount explains the tax rate being applied
  9. Select Next
  10. Confirm your withdrawal details
  11. Select Submit
  1. Log in to the Wealthsimple app
  2. Tap the Move tab at the bottom of your screen
  3. Tap Move money
  4. Select your RRIF as the source account
  5. Choose the destination for your withdrawal
  6. Tap Next
  7. Review how RRIF withdrawals work
  8. Tap Next
  9. Enter an amount and tap Review
  10. Confirm your withdrawal details and Submit your withdrawal

Withdrawing more than your minimum amount

If you withdraw more than your annual minimum, the extra amount will be subject to a withholding tax. We'll automatically deduct the withholding tax from your withdrawal and pay it to the government. The amount of withholding tax we send depends on which province you live in.

If you withdraw: Withholding tax rate (excluding Quebec): Withholding tax rate (Quebec residents):
Up to $5,000 10% 19% (5% Federal + 14% Provincial)
Between $5,001 and $15,000 20% 24% (10% Federal + 14% Provincial)
More than $15,001 30% 29% (15% Federal + 14% Provincial)
Note: Tax rates are calculated on the total amount withdrawn over a 60-day period within the given tax year.

Spousal RRIF three-year attribution rule

Your spouse may be taxed on the excess amount you withdraw if they contributed to your spousal RRSP in the year of the withdrawal request or the two preceding years. Please use Form T2205 to calculate the amount you and your spouse must report to the Canada Revenue Agency.

Note: This rule doesn't apply to the minimum amount.

RRSP to RRIF conversion considerations

During the calendar year that you convert your RRSP into a RRIF, there's no minimum withdrawal requirement. Any withdrawal made during this year will be subject to a withholding tax. This minimum will come into effect the following calendar year.

Example: If you convert your RRSP this calendar year into a RRIF, you aren't required to withdraw any amount from your RRIF until the following calendar year. If you decide to withdraw funds this year, it'll be subject to withholding tax.

The following calendar year, you'll be required to withdraw the minimum amount, which won't be subject to withholding tax. Any amount withdrawn over the minimum in the next calendar year will be subject to withholding tax.

Frequently asked questions

Why do I need to withdraw my minimum before an internal transfer?

This is a requirement mandated by the CRA that Wealthsimple must follow when processing your internal transfer request.

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