RRSP to RRIF
In particular, an RRSP must be converted to a RRIF by the end of the year in which the RRSP holder reaches 71 years of age, and a minimum amount must be withdrawn from the RRIF annually beginning the year after it is established (alternatively, the RRSP savings may be used to purchase an annuity). This treatment ensures that the tax-deferred RRSP/RRIF savings serve their intendedretirement income purpose.
RRIF Income Inclusion Rates
As a result, the new RRIF factors will be substantially lower than the existing factors. The current RRIF factors will range from 5.28 per cent at age 71 to 18.79 per cent at age 94. The percentage that seniors will be required to withdraw from their RRIF will remain capped at 20 per cent at age 95 and above.
Minimim RRIF Withdrawal Rates in 2020
(at start of year)
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