After paying income tax on the $50,000 withdrawal from the RRSP, the senior would be left with $40,000 in a TFSA, enough for annual withdrawals of $2,000 over a 20-year period. Bruce’s first annual minimum withdrawal amount would be $4,000 if his balance on Jan 1, 2018 is $100,000. The focus of retirement income planning should not be solely on the legislated minimum withdrawal schedule. The most effective way to minimize tax on RRSP/RRIF withdrawals, in the long run, Canada generally does not tax contributions to or accumulations in an RRSP. Under the Convention, Canada generally will impose a withholding tax of 25 percent on distributions to non-residents. The withholding tax for periodic payments, such as an RRIF which has been annuitized is 15%.