With a Registered Retirement Income Fund (RRIF), you must withdraw a minimum amount every year starting in the calendar year after the year you open the account. The withdrawn funds are considered income and should be considered for your own tax reporting purposes.
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:
- Visit my.wealthsimple.com and sign in to your Managed Investing & Save account
- Select the Move Funds menu item
- Choose Withdraw funds
- In the From field, select your RRIF
- In the To field, select your desired account
- Choose your Reason for withdrawal
- Under Amount, you will see your minimum
- Log in to your Wealthsimple mobile app
- Tap the icon with two arrows at the bottom of your screen
- Select the Withdraw menu item
- Select your RRIF and tap Next
- Choose the destination for your withdrawal and tap Next
- Here, you will see your Yearly minimum remaining which is the amount you must withdraw by the end of the calendar year
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 holding 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% |
39% (15% Federal + 14% Provincial) |
During the calendar year that you convert your RRSP into an RRIF, there is 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
The following calendar year, you will 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 Any amount withdrawn over the minimum in the next calendar year will be subject to withholding tax.
How to make a withdrawal
To make a withdrawal, follow these steps:
- Visit my.wealthsimple.com and sign in to your Managed Investing & Save account
- Select the Move Funds menu item
- Choose Withdraw funds
- In the From field, select your RRIF
- In the To field, select your desired account
- Choose your Reason for withdrawal
- Under Amount, you can select either Minimum or Other
- Select your Frequency
- Set withdrawal
- Log in to your Wealthsimple mobile app
- Tap the move tab
at the bottom of your screen
- Select the Withdraw menu item
- Select your RRIF and tap Next
- Choose the destination for your withdrawal and tap Next
- Enter an amount and tap Review
- Confirm your withdrawal details and Submit your withdrawal
Note: The yearly minimum remaining is the amount of money that you have to withdraw by the end of the calendar year.
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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