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, and you can withdraw up to your full account balance as your maximum. We'll help you stay within these limits 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 and maximum withdrawal amount
Your minimum withdrawal amount is determined for you by the Canadian government based on your age. You can reference the CRA's prescribed factors table for benchmarks. Your maximum available amount is your full account balance.
To find your remaining minimum withdrawal amount, follow these steps:
- Log in to your Wealthsimple profile on a laptop or computer
- Select the Move tab
- Select Transfer money
- In the From field, select your RRIF or Spousal RRIF
- You'll see your remaining minimum withdrawal amount
- Log in to the Wealthsimple app
- Tap the Move tab at the bottom of your screen
- Under Move money, tap Transfer money
- Select your RRIF as the source account
- Choose the destination for your withdrawal
- Tap Next
- Review how RRIF withdrawals work
- Tap Next
- 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, your full account balance as your maximum, or another amount within your limits. You must withdraw the minimum amount by the end of the calendar year. Any amount greater than your minimum will be subject to withholding tax.
Follow these steps to make a one-time or recurring RRIF withdrawal:
- Log in to the Wealthsimple app
- Tap the Move tab at the bottom of your screen
- Under Move money, tap Transfer money
- In the From field, select your RRIF or Spousal RRIF
- Choose the destination for your withdrawal
- Tap Next
- Choose a withdrawal mode: Withdraw Minimum, Withdraw Maximum, or Choose Your Own Amount
- For Withdraw Minimum or Withdraw Maximum, your amount and withholding tax are pre-filled and can't be changed.
- For Choose Your Own Amount, you can set your own amount and withholding tax, within your limits.
- If your account holds both CAD and USD, use the currency toggle to choose which to withdraw. Choosing USD sets your withdrawal to a one-time transaction: recurring and post-dated withdrawals are only available in CAD, since the exchange rate can only be set at the moment of the transaction.
- Review your withdrawal details. For USD withdrawals, the Taxes amount is shown in USD, with a secondary Reported Amount line showing the CAD-converted figure.
- Tap Confirm
- Log in to your Wealthsimple profile on a laptop or computer
- Select the Move tab
- Select Transfer money
- In the From field, select your RRIF or Spousal RRIF
- In the To field, select your desired linked bank account
- Choose a withdrawal mode: Withdraw Minimum, Withdraw Maximum, or Choose Your Own Amount
- For Withdraw Minimum or Withdraw Maximum, your amount and withholding tax are pre-filled and can't be changed.
- For Choose Your Own Amount, you can set your own amount and withholding tax, within your limits.
- If your account holds both CAD and USD, use the currency toggle to choose which to withdraw. Choosing USD sets your withdrawal to a one-time transaction: recurring and post-dated withdrawals are only available in CAD, since the exchange rate can only be set at the moment of the transaction.
- Select Next
- Confirm your withdrawal details
- Select Submit
Multiple withdrawals
Per Canada Revenue Agency’s (CRA) general anti-avoidance guidance, where it appears that an annuitant is making separate taxable withdrawals from an RRSP/FHSA/RRIF/LIF to minimize the income tax withheld, for example, where a series of requests are made in a short period of time, it is the CRA's position that the withholding rate should be determined as if multiple withdrawals were combined into a larger lump sum. Thus, a higher withholding tax rate could apply.
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) |
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.
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.
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.
Can I internally transfer from my RRIF to another Wealthsimple account instead of an external bank account?
You can move funds from your RRIF to eligible account types by following the transfer steps above.
Can I transfer between two RRIF accounts?
Yes, once you've withdrawn your annual minimum from the account you're transferring from. If you haven't met your minimum yet, you'll need to do that first before the transfer can go through.
Can I hold or withdraw US dollars from my RRIF or spousal RRIF?
If you have a self-directed RRIF or spousal RRIF, yes. This isn't yet available for managed accounts.
Will I still be charged FX fees on USD in my RRIF account?
No. You won't pay FX fees to hold US dollars, trade US-listed securities, or make internal transfers in USD in this account.
Can I set up a recurring US dollar withdrawal?
Not yet. Because the exchange rate is only set at the moment of your transaction, USD withdrawals can only be made one at a time. You can still set up a recurring withdrawal in Canadian dollars.
Can I withdraw US dollars directly to my bank account?
Yes. You can transfer your USD to another Wealthsimple account, or withdraw it directly to a USD bank account.
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