Should RRIF withdrawals be based on the younger spouse’s age? Nov 8th

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Should RRIF withdrawals be based on the younger spouse’s age?

– moneysense.ca

I am wondering about the minimum RRIF withdrawal calculation. We are wondering if it would be beneficial to use the younger spouse’s age to result in a lower annual combined income. Can you explain the reasoning behind this?—Bernie

When can you convert an RRSP to a RRIF?

Registered retirement savings plans (RRSPs) are tax-deferred accounts meant primarily to fund retirement with withdrawals taken at that time. You can, though, take an RRSP withdrawal at any time. There are no restrictions on withdrawals, except if you have a locked-in retirement account (LIRA) that came from a pension plan transfer. The only drawback of RRSP withdrawals is that they are considered fully taxable income, with the exception of eligible withdrawals for a home purchase or post-secondary education.

You can contribute to an RRSP until the end of the year you turn 71. By no later than December 31 of the same year, you must cash in your entire account (not advisable), buy an annuity from an insurance company (not common) or convert your RRSP to a registered retirement income fund or RRIF (most common)…

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