In the year that an individual turns 71 they must decide how to convert their RRSP. Most individuals choose to convert their RRSP to a RRIF. With an RRSP an investor is not required to make any annual withdrawals. Once an individual converts an RRSP to a RRIF they must soon begin receiving annual minimum payments. There are no maximum required payments; however, individuals should first look at the tax consequences of all decisions.
The following are the Annual Minimum Payment Percentages (*):
Age |
Percentage |
Age |
Percentage |
69 |
No required payment |
82 |
9.27% |
70 |
No required payment |
83 |
9.58% |
71 |
No required payment |
84 |
9.93% |
72 |
7.48% |
85 |
10.33% |
73 |
7.59% |
86 |
10.79% |
74 |
7.71% |
87 |
11.33% |
75 |
7.85% |
88 |
11.96% |
76 |
7.99% |
89 |
12.71 |
77 |
8.15% |
90 |
13.62% |
78 |
8.33% |
91 |
14.73% |
79 |
8.53% |
92 |
16.12% |
80 |
8.75% |
93 |
17.92% |
81 |
8.99% |
94+ |
20.00% |
* the above rates relate to RRIF accounts that were established in 1993 and after. Different percentages apply for RRIF accounts established prior to 1993.
** all minimum payments are based on the market value of the portfolio on January 1st of each year.
