StudyingLife

Switch exam

LLQP (life licence)

LifeLLQP Life Insurance✓A&SLLQP Accident & Sickness Insurance Seg FundsLLQP Segregated Funds & Annuities EthicsLLQP Ethics & Professional Practice (Common Law)

← All study notes

Segregated Funds and Annuities · Component 1: assess the client's needs (35%)

Registered Plans & Retirement Income

RRSPs, RRIFs, TFSAs, locked-in plans and government benefits shape retirement income. Know the 2026 limits and the timing rules.

Assess the client's needs and situation2 min read5 sections

Must-know for the exam

2026 RRSP limit: 18% of 2025 earned income, up to $33,810, minus any pension adjustment, plus unused room.
RRSPs must mature by 31 December of the year the annuitant turns 71.
RRIF minimum under 71: 1 / (90 - age at 1 January); at 71 the factor is 5.28% (Reg. 7308).
Withholding on RRSP lump sums outside Quebec: 10% to $5,000, 20% to $15,000, 30% above.
Spousal RRSP withdrawals are taxed to the contributor if he contributed in that year or the 2 years before (s. 146(8.3)).
TFSA limit 2026: $7,000; cumulative room since 2009 for someone eligible throughout: $109,000. Withdrawals are re-added on 1 January next year.
Excess TFSA contributions: 1% a month. RRSP over-contributions: 1% a month above a $2,000 cushion.
CPP: -0.6% a month before 65 (36% at 60), +0.7% a month after 65 (42% at 70). OAS: +0.6% a month deferred to 70 (36%).
OAS recovery tax: 15% of net income above $95,323 for the 2026 income year.

On this page · 5 sections

Traps that cost marks

Using the dollar limit when 18% of income is lower.
Using 18% of income without the dollar cap.
Counting to the birthday instead of year-end.
Using the age-71 factor for a younger annuitant.
Applying the under-71 formula at 71.
Thinking minimums can simply be skipped.
Thinking withholding is the final tax.
Taxing the annuitant spouse regardless of recent contributions.

Why it matters on the exam

Expect calculations: RRSP room, RRIF minimums, CPP and OAS adjustments and the OAS clawback.

Plans compared

Plan	Contribution	Growth	Withdrawal
RRSP	Deductible	Tax-deferred	Fully taxable
RRIF	None	Tax-deferred	Taxable; annual minimum
TFSA	Not deductible	Tax-free	Tax-free; room restored next year
LIRA / LIF	Pension transfers only	Tax-deferred	Locked in; LIF has a maximum

Premium

Every note. Every question. One pass.

3 more sections of this note are part of Premium.

Every section of every study note
1,000+ original questions across every outline topic
Full timed practice exams
A worked explanation on every question
Your full mistake bank and weak-area review

Unlock with Premium

From about C$8.25/mo on the Until-you-pass pass (12 months)

More on this topic

Exam-style questions

Victor, a retired railway worker in Moncton, New Brunswick, turned 65 in November 2025, so he was 65 on 1 January 2026. He converted his RRSP to a RRIF earlier in 2025, and the RRIF was worth $200,000 on 1 January 2026. He is divorced and lives alone. He also receives a pension of $1,900 a month from the railway. What is his minimum RRIF withdrawal for 2026?
Lin, a retired chemist in Kingston, Ontario, converted her RRSP to a RRIF late in 2025. She was 71 on 1 January 2026, and the RRIF was worth $300,000 on that date. She is single, so no spouse's age was used to set the payment schedule. She asks her agent how much she must take out this year. What is her 2026 minimum withdrawal?
Rolf, 71, is converting his RRSP to a RRIF this year and has not yet received any RRIF payment. His wife is 66. He wants his required minimum withdrawals to be as small as possible. How can he reduce them?

← Previous note: Investor Profile & Investment Basics All study notes