Overview
You can withdraw funds from your Registered Retirement Income Fund (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:
- Log in to your Wealthsimple account
- Select Move money from the Home page
- Select Next to continue on a new page
- In the From field, select your RRIF
- In the To field, select your desired bank account
- Choose your Reason for withdrawal
- In the Amount field, enter an amount
- Under Amount, you can see your minimum withdrawal amount
- Log in to your Wealthsimple mobile app
- Tap the Move icon at the bottom of your screen
- Tap Move 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 an 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 mobile 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:
- Sign in to your Wealthsimple account
- Select Move money from the Home page
- Select Next to continue on a new page
- In the From field, select your RRIF
- In the To field, select your desired bank account
- Choose your Reason for withdrawal
- In the Amount field, enter an amount
- Under Amount, you can select either Minimum, Maximum or Other
- Select your Frequency
- Click Set withdrawal
- Log in to your Wealthsimple mobile app
- Tap the Move tab at the bottom of your screen
- Tap Move money
- Select your RRIF as the source account
- Choose the destination for your withdrawal
- Tap Next
- Review how RRIF withdrawals work
- Tap Next
- Enter an amount and tap Review
- 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 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) |
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 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.
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.
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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