REGISTERED RETIREMENT INCOME FUND (RRIF)

In the majority of cases, the funds transferred into an RRIF come from a registered retirement savings plan (RRSP). They can, however, come from other sources of savings, such as:

• The Registered Pension Plan (RPP)
• The Pooled Registered Pension Plan (PRPP)
• The Deferred Profit-Sharing Plan (DPSP)
• A different registered retirement income fund (RRIF)
• The First Home Savings Account (FHSA)

After converting your retirement savings into an RRIF, you must make a minimum withdrawal each year. This minimum withdrawal is established by the Canada Revenue Agency (CRA). It varies each year, according to your age and the value of your RRIF at the beginning of the current year. Your advisor can help ensure that you are withdrawing the yearly minimum throughout your retirement.

Yes, there are different options for RRIF withdrawal frequency. Check with your advisor to discuss your options and make sure that your withdrawal strategy meets your income and tax needs..

Yes, the funds withdrawn from your RRIF must be included in your annual income. They will be taxed according to your marginal tax rate.

If you were to fail to convert your RRSP into an RRIF before the end of the year you turn 71, your RRSP would lose its status as a registered plan and you would owe tax on the entire balance. Such a significant tax bill would reduce your retirement savings.

To avoid finding yourself in this situation, be sure to convert your RRSP into an RRIF in time. You can also purchase an annuity before the end of the year you turn 71.