R R I F s

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A Registered Retirement Income Fund (RRIF) lets you convert your retirement savings into retirement income. With a RRIF, your money continues to grow tax-sheltered until you make withdrawals.

Canada Revenue Agency prescribes a minimum amount you must withdraw from your RRIF every year. The amount is based on the value of your account at the beginning of the year and you (or your spouse's) age.

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How RRIF's work

By the end of the year your turn 71, you must close your RRSP.

You have three options at that point:

  • Transfer your investments to a RRIF
  • Use the funds to buy an Annuity
  • Cash in your investments and claim the entire amount as income

Although you can set up a RRIF before you turn 71, you cannot make contributions to a RRIF. It is designed to be a source of income when you retire.

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Key Features and Benefits

Withdrawal amounts to meet your needs

Once you withdraw your required RRIF minimum, you have the freedom to take out any additional amount, provided your plan is not locked-in under pension legislation. This give you the flexibility to adjust your income to match your retirement needs.

Keep in mind that any withdrawals are added to your income in the year withdrawn.

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