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How is the annual minimum RIF withdrawal calculated?

The minimum withdrawl is calculated at the beginning of each year. It is determined using a percentage factor linked to either the plan holder's (or spouse's, if elected) age multiplied against the year end market value of the previous year. For example, the 2021 minimum payment uses the December 31st 2020 year end market value. (Please visit the Canada Revenue Agency website for more information).

Please note: Once you elect to use either your age or your  spouse's age for calculating the minimum, that election cannot be changed at a later date.

There is no minimum RIF payment made the year the plan is opened.

For those who are under the age of 71, or had accounts before 1992, the payment is calculated using the following formula:  [100 ÷ (90-age) = Minimum % of the plan's market value that must be withdrawn]

If you open a RIF account before the age of 71, the first payment starts the following year. There is no maximum withdrawal limit except on locked-in plans.

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