Calculate how much to set aside for your child's education. Payments must then commence from the RRIF at the latest in the year following the year the RRIF is established. RRIF withdrawals are subject to minimum amounts prescribed by Revenue Canada. You may withdraw amounts above the minimum amounts at any time. The RRIF continues as a tax sheltered vehicle and investment income accumulates tax free.
All withdrawals are subject to income tax.
Minimum withdrawal amounts are based on age in whole numbers at the start of the year and the RRIF fund value at the start of the year. The percentages for RRIFs established after 1992 for ages over 70 are prescribed by Revenue Canada. I have developed a RRIF Calcualtor showing fund development, minimum withdrawals and percentage rates. There are also locked in RRIFs or LIFS which operate identically to a RRIF but must be converted to annuities by the end of the calendar year in which the individual turns 80. There is also legislation for maximum withdrawals from LIFs.