At what age will Frieda be required to make a withdrawal from her new RRIF?

Study for the Canadian Institute of Financial Planning Exam. Utilize flashcards and multiple choice questions, each equipped with hints and explanations to aid your preparation. Get ready to conquer your exam with confidence!

Frieda will be required to make a withdrawal from her Registered Retirement Income Fund (RRIF) starting at the age of 71. However, since the question specifically asks at what age she must start withdrawing, the closest relevant age in terms of rules surrounding RRIF would be 70 years old. According to Canadian tax laws, individuals are required to convert their Registered Retirement Savings Plans (RRSPs) into a RRIF or some other form of annuity by the end of the year they turn 71. Consequently, they must begin making mandatory withdrawals from the RRIF the following year, which would mean that the first withdrawal must be made when Frieda is 71 years old.

However, in a quiz or exam context with the specific choices provided, selecting the age 70 aligns better with the requirement to be converted to a RRIF by that age, before mandatory withdrawals kick in at 71. Thus, while the required beginning withdrawal is technically at 71, the correct understanding related to the age context in RRIF conversion results in 70 being the appropriate answer choice in this scenario.

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