Each year, a formula is used to calculate your minimum RRIF payment. The mandatory payment must be made before the end of the calendar year. Amounts withdrawn from your RRIF must be included as taxable income. Depending on your situation, you can choose the frequency of payments.
If you need a regular stream of income for day-to-day expenses, clients can elect to receive their RRIF payment, monthly
If funds are not required throughout the year, clients can elect to receive their RRIF payment at year end, as a one-time lumpsum payment
For clients who don’t need the funds, provided you have TFSA contribution room, the funds from your RRIF payment (net of tax) can be contributed to your TFSA and grow tax free. The excess can be invested in your Non-Registered Account. This strategy allows you to continue increasing your wealth.