Do you pay taxes if you withdraw from a RRIF before you are 71?
Once you open a Registered Retirement Income Fund (RRIF), regardless of your age, you must start making withdrawals, starting the year following opening the plan. The Canada Revenue Agency (CRA) sets a schedule of minimum annual withdrawals, increasing each year as you age.
RRIF withdrawals must be included as income at tax time, and any amounts over the minimum withdrawal are subject to a withholding tax.
For more information on withdrawals from a RRIF, speak to your registered financial advisor or the financial institution where you have your account.