Starting the year after you open your RRIF, you must withdraw a required minimum amount each year. The amount of the minimum required payment is based on your listed date of birth (or your spouse's age if elected) on January 1.
Minimum withdrawal calculation:
The minimum withdrawal is calculated as: RRIF balance (December 31 previous year) × prescribed percentage provided by CRA.
For the prescribed factors, visit: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/completing-slips-summaries/t4rsp-t4rif-information-returns/payments/chart-prescribed-factors.html
Withdrawal requirements:
- Linked account: RRIF withdrawals must be done against a linked non-registered account
- Minimum withdrawals: For any withdrawals up to the minimum annual amount, there is no withholding tax
- Excess withdrawals: For incremental amounts above the required minimum, standard federal and provincial withholding tax would apply
- Tax information: The rate and amount would be provided on the withdrawal page under Client Portal
What happens if I do not withdraw the minimum amount?
If you fail to withdraw your minimum annual amount by the end of December, Interactive Brokers will automatically liquidate assets to cover the outstanding minimum withdrawal. The withdrawal will be deposited into your linked non-registered account.