Registered Retirement Income Fund (RRIF)
A Registered Retirement Income Fund (RRIF) is a continuation of your RRSP. Your RRIF is tax-deferred. The difference between an RRSP and a RRIF is that you must take out an minimum amount each year.
Money is only permitted to be deposited in a RRSP if directly transferred from your RRSP. RRSPs must be converted to either a RRIF or an annuity no later than the end of the year in which you reach age 69.
Your RRIF has not limitation to the amount of money that may be withdrawn, because that your maintain the amount of money in your RRIF lasts the rest of your life.
With an RRIF you have a choice in how you invest your money. You can choose from:
- Segregated funds
- Guaranteed investment certificates (GICs)
- Mutual funds
- Other options based on your financial plan and risk tolerance
You may have the option to keep your current investments and move them into an RRIF.
How can an RRIF fit into your financial plan?
Do you want to use the money in your RRSP as income? RRIFs are great options for that.
- Control your investments – Invest your money in a way that grows and works for you.
- Control your income – You have a minimum withdraw requirement, but, you can take as much money out as you want at any time. Just be careful with the amount and number of withdrawals because you could hurt your future income.
- Maximize your tax deferral – Like you’re your RRSP your RRIF is tax-free until you withdraw funds.
- It can be passed to your spouse tax-free – your beneficiaries will receive your assets tax-free when you pass away.
- Want something more secure? Convert to guaranteed income at any time.