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The RRIF calculator has 2 types of calculators:
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Minimum or Fixed Withdrawal
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Max Withdrawal
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These 2 calculators
are NOT linked to each other - what you input into one of them does not
change the numbers in the other ones.
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Income
tax
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RRIF withdrawals are taxable. The withdrawals shown are
before-tax amounts.
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Starting
balance in RRIF
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This should be the
amount in the RRIF at December 31 of the prior year.
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The calculators assume
that the first year is NOT the year the RRIF was set up. This way, the table can be used starting in
any year of the RRIF except the setup year.
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Year of setup
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If you are setting up
your RRIF in the current year, use the calculation below to determine the
amount to put into the RRIF calculator as the starting amount for the
beginning of next year.
Input desired data, then press the Calculate button above.
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Initial deposit
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Start date (mm/dd/yy)
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Expected rate of return |
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Withdrawal in current year
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- no
withdrawal is necessary
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Return on investment
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Balance at end of year
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Age
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Age is the age of the annuitant (owner) of the RRIF at December
31 of the prior year.
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Minimum annual
withdrawals
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There is no withdrawal
necessary in the year a RRIF (Registered Retirement Income Fund) is set up,
but there are minimum amounts that must be withdrawn annually starting in the
year after setup. Unless certain types of annuities are held in the RRIF,
the minimum withdrawal amount is calculated by multiplying the market value
of the RRIF holdings at the beginning of the year by a "prescribed
factor". Locked-in Retirement
Accounts (LIRAs) are subject to the same minimum withdrawals as RRIFs. LIRAs are also subject to maximum allowable
withdrawals, governed by either federal or provincial legislation.
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For a RRIF started in
1993 or later, the prescribed factor for minimum withdrawals is 1/(90-age),
but only while the annuitant is under 71 years old.
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If the RRIF was
started prior to 1993, then it is a "qualifying RRIF", as long as
no new property was transferred into the RRIF after 1992, other than from
another qualifying RRIF. The prescribed factor for minimum withdrawals
for a qualifying RRIF is 1/(90-age) while the annuitant (owner) of the RRIF
is under 79 years old.
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The check box should
be ticked if the RRIF was started prior to 1993.
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Estimated rate of
return
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The estimated rate of
return can be changed to show the effect on minimum withdrawals and how long
the RRIF investment will last.
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Fixed annual
withdrawal
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A desired annual
withdrawal amount can be entered, but if it is less than the minimum required
withdrawal, the minimum required withdrawal will be used in the calculator.
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Inflation rate
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An estimated inflation
factor can be used, and the annual withdrawal will be increased by this
factor each year. The inflation factor
can also be set to zero if desired.
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Maximum withdrawal
for X years
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This calculator allows
you to specify how many years you want your RRIF to last.It will calculate the maximum payment per
year in order for your RRIF to last the specified number of years.
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If the period
specified causes the payments to be lower than the minimum annual
withdrawals, then the minimum annual withdrawals will be used. This will reduce the number of years that
the money will last.
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If your RRIF is
locked-in, the maximum amount you may withdraw is governed by either federal
or provincial legislation. The maximum
withdrawals in the calculator may exceed the maximums allowed by legislation.
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