Seg Funds Registered Plans & Retirement Income question: retired chemist in Kingston

Seg FundsRegistered Plans & Retirement Income

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?

A $15,000
B $15,789
C $15,840
D $16,200

Show the answer and explanation

Answer: C. $15,840

At age 71 the prescribed factor is 0.0528: $300,000 x 0.0528 = $15,840. Using 1/(90-71) gives $15,789, but that formula applies only under 71; $16,200 uses the age-72 factor of 0.054. Source: Income Tax Regulations, C.R.C., c. 945, s. 7308(3)-(4) (current to 21 Sep 2026) (as at 12 Oct 2026).

Common mistake

Applying the under-71 formula at 71.

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Original study material mapped to the public CISRO curriculum; not a real test question.Not affiliated with CISRO, CCIR or any provincial insurance regulator. Verify figures and rules against current guidance before relying on them.