There are two key decisions to be made with a RRIF, how much money to take out and when. There is a minimum withdrawal amount set by the federal government which increases as you get older. You can choose to make regular monthly, quarterly, semi-annual or annual withdrawals however, all withdrawals are fully taxable as income in the year withdrawn.
These previous questions may provide further insight:
- “How is the minimum amount calculated for a RRIF?”
- “Why do I have to pay tax on money I withdraw from a RRIF? I set up the RRIF with funds from a savings account.”
- “Is there a fee when you redeem part of your RRIF for cash?”