Marie, 68, living in Quebec, recently retired and is converting her RRSP to a RRIF. She holds $500,000 in her RRIF. Her only income is from her RRIF and CPP. What is the minimum amount Marie must withdraw from her RRIF in the first full year (after the year of conversion) if her spouse, Jean-Luc, is 70 and she elects to base her minimum withdrawals on his age?

Question: Marie, 68, living in Quebec, recently retired and is converting her RRSP to a RRIF. She holds $500,000 in her RRIF. Her only income is from her RRIF and CPP. What is the minimum amount Marie must withdraw from her RRIF in the first full year (after the year of conversion) if her spouse, Jean-Luc, is 70 and she elects to base her minimum withdrawals on his age?

Answer options: ✅ $20,000

• $27,500
• $25,000
• $33,333

Correct answer: $20,000

Explanation: The minimum RRIF withdrawal amount is calculated by multiplying the RRIF fair market value at the beginning of the year by a prescribed percentage based on the annuitant's age (or younger spouse's age, if elected). For age 70, the factor is 4%, so $500,000 * 0.04 = $20,000. (The factors are: 55-69: 1/(90-age); 70: 4%; 71: 4.17%; etc.).