How to deal with your finances when the economy is stressing you out + MORE Mar 7th

Ask MoneySense
If I convert, say, 50% of my RRSP to RIF, is the mandatory withdrawal calculation based on the converted 50% or the total (unconverted) RRSP and converted RIF? Does Canada Revenue Agency inform me how much I need to withdraw every year from my RIF?

—Jackie

Withdrawals from multiple registered accounts

I come across a lot of people who have had registered retirement savings plan (RRSP) accounts for 40 years and are unclear on how the withdrawal process works. So, your inquiry, Jackie, is a good one.

I will address your questions and explain a bit more about the tax and procedural considerations with registered account conversion.

RRSP withdrawal rules

You can take an RRSP withdrawal whenever you want. The only exception is with a locked-in RRSP that comes from a pension plan. You may not be able to take withdrawals prior to age 55, except for extraordinary circumstances that vary based on the province of the pension the funds were transferred from.

RRSP withdrawals are taxable…

Who would have thought that just a few month ago, all we had to “worry” about was the ongoing pandemic, high interest and inflation rates, and high grocery and housing costs. We’re three months into 2025 and so far we’ve had tariffs on Canadian goods threatened in February, then actual tariffs go into effect March 4—which may or may not be rolled back. We’ve had a month-long (so far) boycott of anything American and Canadians educating ourselves on the difference between “made in Canada” and “produced in Canada.” Interest rates and inflation rates dropped, but now we’re facing a possible increase in inflation and a recession.

To no one’s surprise, money remains a primary concern for many Canadians. As of last year, it was the top stressor for 44% of Canadians, up from 40% the year before, according to FP Canada’s annual Financial Stress Index. With everything that’s going on, budgeting and planning for retirement feels pointless. Why is it so hard to make financial planning and investing decisions when you’re overwhelmed? Glad you asked…