RRSP Meltdown Calculator
Plan how to draw down your RRSP in low-income years before the age-71 RRIF conversion, fill each year's taxable income to a bracket ceiling, and see how much lifetime tax you save versus taking it all as a single lump.
Meltdown Plan
RRSPs must convert by the end of the year you turn 71.
Each year fills taxable income up to this ceiling. 2026 federal bracket tops: $58,523, $117,045, $181,440, $258,482.
Total Melted Down
$385,000
Withdrawn across ages 60–70.
Tax Saved vs Lump
$75,195
Spread tax $73,843 vs lump $149,038.
Balance at Conversion
$124,878
Rolls into your RRIF at age 71.
Year-by-Year Meltdown Schedule
| Age | Withdrawal | Taxable Income | Tax on Withdrawal | Closing Balance |
|---|---|---|---|---|
| 60 | $35,000 | $55,000 | $6,713 | $379,600 |
| 61 | $35,000 | $55,000 | $6,713 | $358,384 |
| 62 | $35,000 | $55,000 | $6,713 | $336,319 |
| 63 | $35,000 | $55,000 | $6,713 | $313,372 |
| 64 | $35,000 | $55,000 | $6,713 | $289,507 |
| 65 | $35,000 | $55,000 | $6,713 | $264,687 |
| 66 | $35,000 | $55,000 | $6,713 | $238,875 |
| 67 | $35,000 | $55,000 | $6,713 | $212,030 |
| 68 | $35,000 | $55,000 | $6,713 | $184,111 |
| 69 | $35,000 | $55,000 | $6,713 | $155,075 |
| 70 | $35,000 | $55,000 | $6,713 | $124,878 |
Planning the RRIF side too?
See your RRIF minimum withdrawals after conversion →How the meltdown works: An RRSP meltdown spreads withdrawals across your lower-income years before the age-71 RRIF conversion, filling each year's taxable income up to a bracket ceiling so you avoid the higher forced minimums — and the OAS clawback — that a lump or large RRIF balance can trigger later. All RRSP withdrawals are fully taxable income and subject to withholding at source. Tax figures assume the chosen year's brackets apply each year and do not model indexation, CPP/OAS timing, or pension income credits. This calculator is for illustrative purposes only — consult a qualified financial advisor for personalised retirement planning advice.
Understanding the RRSP Meltdown
An RRSP meltdown is a decumulation strategy that deliberately withdraws money from your RRSP in the years before you are forced to convert it to a Registered Retirement Income Fund (RRIF). The idea is simple: pull money out while your income is low so it is taxed at a low marginal rate, rather than letting the balance grow and face larger, more heavily taxed mandatory withdrawals later.
The age-71 RRIF cliff: You must convert your RRSP to a RRIF or a qualifying annuity by December 31 of the year you turn 71. From age 72 the CRA requires a minimum withdrawal every year, and that minimum percentage rises with age — from about 5.40% at 72 to 20% at 95 and older. A large RRIF balance therefore forces a growing taxable income whether you need the money or not.
Bracket smoothing: Canada's tax brackets are progressive, so income taxed at 20.5% costs far less than the same dollars taxed at 26% or 29%. By filling each pre-conversion year's taxable income up to a chosen bracket ceiling — but no higher — you keep every withdrawal in a lower band. Spreading $200,000 over ten years at a low rate can cost dramatically less tax than drawing it in a few high-income years.
OAS clawback interaction: Old Age Security is reduced by 15 cents for every dollar of net income above the annual recovery threshold. Big RRIF minimums after 71 can push your income over that line and claw back part or all of your OAS. Melting the RRSP down earlier — ideally before OAS begins or while other income is low — keeps later-year income under the clawback threshold for many retirees.
Who benefits, and the caveats: The meltdown helps most when you have a large RRSP, a low-income gap before pensions or OAS start, and room inside a lower bracket. It is not free money — every withdrawal is fully taxable and subject to withholding at source. It also assumes you do not need the deferral, and the right ceiling depends on your other income, province, and benefit eligibility. Treat the output as a planning estimate and confirm with a qualified advisor.
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Last updated May 2026. Reflects CRA federal income tax brackets and RRSP/RRIF rules.