Worked Scenarios and Checklists
RRSP to RRIF at 71: your options, the 2026 minimum withdrawal factors and a worked first year
What you must do with an RRSP by December 31 of the year you turn 71, RRIF vs annuity vs cash, the prescribed minimum factors, the younger-spouse election and the first RRIF year.
Your RRSP must be wound up by December 31 of the year you turn 71. You can convert it to a Registered Retirement Income Fund (RRIF), use it to buy an annuity, withdraw it as cash (fully taxable in one year, which is rarely sensible), or combine these. Most people choose a RRIF: the investments stay invested and tax-deferred, but from the year after opening you must withdraw at least a minimum each year, equal to the January 1 value times a prescribed factor: 5.28% at age 71, rising to 6.82% at 80 and 20% from age 95. No tax is withheld on the minimum, but every dollar is taxable income.
This guide is part of the scenarios hub. General information, not financial advice; check the CRA's prescribed factors chart before relying on a figure.
The three options compared
| RRIF | Annuity | Cash withdrawal | |
|---|---|---|---|
| Control of investments | You keep it | Insurer takes over | You get the cash |
| Income | Flexible, above a minimum | Fixed or indexed, guaranteed | One lump sum |
| Tax | Taxable as withdrawn | Taxable as received | Entire balance taxable in one year |
| Longevity risk | You bear it | Insurer bears it (life annuity) | You bear it |
| On death | Balance passes to spouse or estate | Depends on guarantee period or joint-life option | – |
| Can be combined | Yes, convert part to RRIF and part to annuity | Yes | Yes |
If you do nothing, institutions generally have a default action set out in the account agreement, often conversion to a RRIF, but do not rely on it: confirm with your institution well before December.
Minimum withdrawal factors
For ages 70 and under at the start of the year, the factor is 1 ÷ (90 − age). From 71, the prescribed table applies:
| Age on January 1 | Factor | Age | Factor | Age | Factor |
|---|---|---|---|---|---|
| 65 | 4.00% | 76 | 5.98% | 86 | 8.99% |
| 70 | 5.00% | 77 | 6.17% | 87 | 9.55% |
| 71 | 5.28% | 78 | 6.36% | 88 | 10.21% |
| 72 | 5.40% | 79 | 6.58% | 89 | 10.99% |
| 73 | 5.53% | 80 | 6.82% | 90 | 11.92% |
| 74 | 5.67% | 81 | 7.08% | 91 | 13.06% |
| 75 | 5.82% | 82 | 7.38% | 92 | 14.49% |
| 83 | 7.71% | 93 | 16.34% | ||
| 84 | 8.08% | 94 | 18.79% | ||
| 85 | 8.51% | 95+ | 20.00% |
Source: CRA chart of prescribed factors for RRIFs. Use the RRIF minimum calculator with your own value.
The younger-spouse election
When you set up the RRIF you can choose to base the minimum on your spouse's or common-law partner's age. If your spouse is younger, the factor is lower, so less must come out each year. The choice must be made before the first payment and cannot be changed later. It suits people who do not need the income and want to keep more tax-deferred; it does not change how much you are allowed to withdraw.
Worked example: converting in 2026 and the first payment
An illustrative person turns 71 in 2026 and has a $420,000 RRSP. Their spouse turns 67 in 2026.
| Step | Detail |
|---|---|
| 2026 | Converts the RRSP to a RRIF in November by direct transfer within the institution. No minimum for 2026, the year the RRIF is opened. |
| January 1, 2027 value | Assume $430,000 (illustrative) |
| Age on January 1, 2027 | 71 |
| Minimum using own age | $430,000 × 5.28% = $22,704 |
| Spouse's age on January 1, 2027 | 67 → factor 1 ÷ (90 − 67) = 4.35% |
| Minimum using spouse's age | $430,000 × 4.35% = about $18,696 |
| Withholding on the minimum | None |
| Extra $8,000 taken in 2027 | 20% withheld outside Quebec ($1,600) |
The minimum can be paid monthly, quarterly or annually. Many people choose monthly payments to replace a pay cheque; others take it in December to keep the money invested longer.
Tax management in the RRIF years
- Pension income amount: RRIF income qualifies for the federal pension income credit on up to $2,000 of eligible pension income from age 65.
- Pension income splitting: from 65, up to 50% of RRIF income can be allocated to your spouse on Form T1032, which can lower combined tax and keep the higher-income spouse under the OAS recovery threshold.
- Converting earlier than 71: opening a small RRIF at 65 can create eligible pension income for the credit and splitting if you have no workplace pension.
- TFSA as a partner account: if the minimum is more than you need, consider moving the after-tax surplus into your TFSA (room permitting) rather than leaving it in a taxable account.
- OAS: large RRIF balances create large minimums later, which can push income into the OAS recovery zone; see OAS clawback and withdrawals.
A last-year RRSP contribution
If you will have earned income in the year you turn 71, you will get new RRSP room the following year, when you can no longer contribute to your own RRSP. Some people make a contribution in December of the year they turn 71, just before converting, equal to next year's room. It causes an over-contribution for one month (taxed at 1% of the excess above $2,000), and the deduction is claimed the following year. This is a technical move; confirm the numbers with a professional. A spousal RRSP is the alternative if your spouse is younger.
Checklist for the conversion year
- Decide RRIF, annuity or both, and get annuity quotes if relevant.
- Decide whether to use your spouse's age for minimums.
- Choose payment frequency and the bank account for deposits.
- Name the RRIF beneficiary or successor annuitant (in Quebec, check your will).
- Consider the last-year contribution question.
- Review investments: the RRIF now needs to produce cash every year.
Frequently asked questions
Can I convert to a RRIF before 71?
Yes, at any age. Minimums then apply from the following year using 1 ÷ (90 − age).
Can I withdraw more than the minimum?
Yes, at any time. Tax is withheld on the excess at the lump-sum rates.
Can I transfer my RRIF to another institution?
Yes, by direct transfer (Form T2033). The minimum for the year must still be paid, normally by the original institution.
Does Quebec use different factors?
No. The prescribed factors are federal. Quebec withholding applies to amounts above the minimum.
Official sources
- Canada Revenue Agency — RRIF rules, chart of prescribed factors and guide T4040
- Revenu Québec — Quebec treatment of RRIF payments
- Justice Laws Website — Income Tax Act section 146.3 and Income Tax Regulations section 7308
- Government of Canada: Old Age Security — the OAS recovery tax
