Seg Funds Registered Plans & Retirement Income question: minimum RRIF withdrawal

Seg FundsRegistered Plans & Retirement Income

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?

A $5,000
B $8,000
C $10,560
D $13,333

Show the answer and explanation

Answer: B. $8,000

Under 71, the factor is 1 / (90 - age at 1 January): 1 / (90 - 65) = 1/25 = 4%. $200,000 x 4% = $8,000. 5.28% (giving $10,560) is the factor at 71. 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

Using the age-71 factor for a younger annuitant.

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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?Ana, 47, lives in Winnipeg, Manitoba, with her husband and two teenagers. Three years ago she bought a non-registered segregated fund contract with a 10-year maturity guarantee and a deferred sales charge schedule. She now calls her agent to say she has lost her job as a warehouse supervisor and will need cash for household bills within 6 months. Her husband's wages cover about half of the family's expenses. Apart from the contract, she has $15,000 in a savings account and no other investments. What should the agent do?

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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.