I am trying to understand the process of converting my RRSP to a RRIF, and starting withdrawals.
I am currently 54 and retired earlier this year. Let's assume I will have $1 million in my RRSP, and that I will turn 55 later this year.
To start withdrawing from the RRIF in 2027 is there a deadline by which I must covert my RRSP to a RRIF in 2026/2027?
My understanding is that if I convert my RRSP to a RRIF, that if I withdraw the minimum percentage 2.86% for age 55 ($28,600) I do not pay any withholding tax on that withdrawal. (Obviously I need to include the amount in my 2027 income tax)
Since I don't have to pay withholding tax can I transfer the securities in kind to my non-registered account, or do I need to sell them to cash, then re-buy them outside of my RRIF?
What date is the minimum RRSP withdrawal percentage based on? If I am withdrawing it all in one day is it based on 2.86% of the value of the RRIF on that withdrawal day or is it based on the value on some other date? If I withdrew the money in 2 lump sums is it 1.43% each time based on the value on that withdrawal day?