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What is a RIF Payment Amount?

RIF Payment Amounts are designed to provide you with a regular stream of retirement income. The Income Tax Act defines the minimum RIF Payment Amount as the amount that must be withdrawn each year after the year the RIF Plan holder turns 71. The RIF holder may withdraw an amount greater than the minimum RIF Payment amount if they wish, but cannot withdraw less. Here are some more details:

  • The calculations for the minimum RIF Payment Amount are based on either the date of birth of the RIF Plan holder or the Plan holder's spouse, as applicable.
  • If the RIF Plan holder wishes to use their spouse's age to calculate the minimum annual RIF Payment Amount, this must be communicated to Tangerine before the first withdrawal is made from the RIF. As per government regulations, once the first RIF Payment Amount is made, the option to use a spouse's age for calculations will no longer be available.
  • If the RIF Plan holder uses their spouse of a younger age to calculate the RIF Payment Amount, the minimum RIF Payment Amount will be lower, meaning that the RIF's funds can grow on a tax-sheltered basis for a longer period of time.
  • Although a RIF Payment Amount must be received at least once a year, you can specify the frequency of receiving your RIF Payment Amounts: weekly, bi-weekly, monthly, quarterly and annually.
  • If no RIF Payment Amount is made during the course of the year, or if a partial amount is to be withdrawn to satisfy the minimum RIF Payment Amount, Tangerine will make the withdrawal transaction on behalf of the RIF Plan holder on December 15th of that year.
  • The RIF Payment Amount required for withdrawal will be transferred to a non-registered Account held by the RIF Plan holder.
  • You'll receive T4RIF tax receipts (a RL2 for Quebec residents) stating the amount of funds taken out of your RIF Plan annually, including both RIF Payment Amounts and additional withdrawals.