RRSP Withdrawal Rules: What You Need to Know (2024)

Your RRSP reaches maturity on the last day of the calendar year you turn 71.

At this point, you can access your RRSP assets through 3 maturity options. The tax implications of your decision depend on the option that you choose.

You can choose to withdraw all the funds in your RRSP as a lump sum, but the withdrawn amount will be subject to withholding tax. The withholding tax gets taken out of your withdrawal immediately and paid to the government.

Additionally, this amount must be added to your income when filing your taxes.

You can choose to convert your RRSP to a RRIF (Registered Retirement Income Fund). A RRIF gives you a steady flow of retirement income, with a minimum amount that must be withdrawn each year.

When converting from your RRSP to a RRIF, it’s important to keep a couple things in mind:

Annual withdrawals:You must make annual minimum withdrawals from your RRIF. These minimum withdrawals must be included in your taxable income each year but are not subject to withholding tax at the time of the withdrawal. Any amount withdrawn over the minimum amount will be subject to withholding tax. See theschedule for RRIF withdrawals.

You could run out of money:Your return might not exceed your RRIF withdrawal rate, in which case you could eventually outlive your savings.