Get RRIF

Basically, it's a Registered Retirement Savings Plan (RRSP) in reverse. Where an RRSP helps you save for retirement through annual contributions, a RRIF does the opposite. It requires you to make annual minimum withdrawals from your savings to help fund your retirement.

When you turn 71 the government requires you to start withdrawals. If you have a good pension and other investments to draw from and you don't think you will need your RRSP at first, talk with your financial advisor to be sure your income won't balloon when you reach that point.

As its name indicates, a RRIF is a registered fund that provides you with retirement income. There is a minimum amount you have to withdraw from your RRIF each year and everything you take out is taxable. Its main advantage is that it allows you to keep some of the tax benefits of RRSPs.

A Registered Retirement Savings Plan (RRSP) must be converted to a Registered Retirement Income Fund (RRIF) by the end of the year in which the owner turns 71, but can be converted at any time before that.

You can convert your RRSP to a RRIF any time, as long as you do so by December 31 of the year you turn 71....RRIF minimum withdrawal chart. AgeRRIF Factors705.00%715.28%725.40%735.53%6 more rows

Grow your savings tax-deferred: All of your RRSP assets can be transferred in-kind, tax-free to your RRIF — and once there, the assets continue to grow on a tax-deferred basis. But keep in mind, any money withdrawn from your RRIF account is taxable in the year received.

What happens if I don't collapse my RRSP? If you don't transfer your RRSP to another registered plan, like an annuity or registered retirement income fund (RRIF) before then, the CRA will treat your entire RRSP savings as income in that year. The tax hit could be substantial.

One of the main pros of an RRIF is that it can hold investments, but one of its cons is that means it is subject to the market conditions, depending on the risk in your portfolio. On the other hand, an annuity provides a guaranteed income but you have little control over it. You do have to pay taxes on both products.

The purpose of RRIFs is to provide retirees with a constant flow of income from their Canadian savings vehicles, such as RRSPs. Life income funds (LIFs) are a type of RRIF that can be used to hold locked-in pension funds.

A registered retirement income fund (RRIF) is an arrangement between you and a carrier (an insurance company, a trust company or a bank) that we register. You transfer property to your RRIF carrier from an RRSP, a PRPP, an RPP, an SPP, or from another RRIF, and the carrier makes payments to you.

You must withdraw 5.28% of the opening balance for the year as per the tables, or $5,280. Withdrawal rates rise each year until 95 when they peak at 20% a year. Depending on your cash flow needs you can take out all the money on Jan. 1 or all on Dec.

The payout period under your RRIF is for your entire life. Your carrier calculates the minimum amount based on your age at the beginning of each year. However, you can elect to have the payment based on your spouse or common-law partner's age. You can withdraw more, but not less than the minimum.

Basically, it's a Registered Retirement Savings Plan (RRSP) in reverse. Where an RRSP helps you save for retirement through annual contributions, a RRIF does the opposite. It requires you to make annual minimum withdrawals from your savings to help fund your retirement.

When you turn 71 the government requires you to start withdrawals. If you have a good pension and other investments to draw from and you don't think you will need your RRSP at first, talk with your financial advisor to be sure your income won't balloon when you reach that point.

As its name indicates, a RRIF is a registered fund that provides you with retirement income. There is a minimum amount you have to withdraw from your RRIF each year and everything you take out is taxable. Its main advantage is that it allows you to keep some of the tax benefits of RRSPs.

A Registered Retirement Savings Plan (RRSP) must be converted to a Registered Retirement Income Fund (RRIF) by the end of the year in which the owner turns 71, but can be converted at any time before that.

You can convert your RRSP to a RRIF any time, as long as you do so by December 31 of the year you turn 71....RRIF minimum withdrawal chart. AgeRRIF Factors705.00%715.28%725.40%735.53%6 more rows

Grow your savings tax-deferred: All of your RRSP assets can be transferred in-kind, tax-free to your RRIF — and once there, the assets continue to grow on a tax-deferred basis. But keep in mind, any money withdrawn from your RRIF account is taxable in the year received.

What happens if I don't collapse my RRSP? If you don't transfer your RRSP to another registered plan, like an annuity or registered retirement income fund (RRIF) before then, the CRA will treat your entire RRSP savings as income in that year. The tax hit could be substantial.

One of the main pros of an RRIF is that it can hold investments, but one of its cons is that means it is subject to the market conditions, depending on the risk in your portfolio. On the other hand, an annuity provides a guaranteed income but you have little control over it. You do have to pay taxes on both products.

The purpose of RRIFs is to provide retirees with a constant flow of income from their Canadian savings vehicles, such as RRSPs. Life income funds (LIFs) are a type of RRIF that can be used to hold locked-in pension funds.

A registered retirement income fund (RRIF) is an arrangement between you and a carrier (an insurance company, a trust company or a bank) that we register. You transfer property to your RRIF carrier from an RRSP, a PRPP, an RPP, an SPP, or from another RRIF, and the carrier makes payments to you.

You must withdraw 5.28% of the opening balance for the year as per the tables, or $5,280. Withdrawal rates rise each year until 95 when they peak at 20% a year. Depending on your cash flow needs you can take out all the money on Jan. 1 or all on Dec.

The payout period under your RRIF is for your entire life. Your carrier calculates the minimum amount based on your age at the beginning of each year. However, you can elect to have the payment based on your spouse or common-law partner's age. You can withdraw more, but not less than the minimum.