In retirement withdrawal sequencing, after taxable accounts, which source is typically next?

• A. TFSA
• B. RRSP
• C. RRIF
• D. RESP

Answer: (C)

In retirement income planning, the order of withdrawals is guided by tax treatment and how the accounts are designed to provide income. After you’ve used up funds in non-registered (taxable) accounts, the next typical source is a RRIF. RRIFs are the vehicle for drawing income from registered savings; they come from converting RRSPs (usually by age 71) and require minimum annual withdrawals, creating a predictable stream of retirement income. Withdrawals from a RRIF are taxed as ordinary income, which is why this source sits next in the sequence when building a taxable-to-taxable-free transition.

TFSA withdrawals, while tax-free, are generally treated as a flexible supplement and are often kept available to use later or to preserve RRIF balances for longer growth. RESP funds are intended for children’s education, not for funding retirement.