Registered Retirement Income Fund RRIF

What is an RRIF ?

A Registered Retirement Income Fund, or RRIF, allows individuals to generate income from investments and savings within their Registered Retirement Savings Plan A RRIF is registered with the Canada Revenue Agency also known as the CRA.

You can convert an RRSP into an RRIF anytime on or before an individual reaches their 71st year.

You can make contributions to your RRSP until December 31st of the year in which you turn 71. It is then mandatory to either withdraw all of the funds from the RRSP or convert the RRSP to a RRIF or life annuity.

If the funds are withdrawn from the RRSP, the entire amount will be treated as income and is fully taxable.
Converting the RRSP to a RRIF allows you to defer the taxes.

The investments that are in the RRIF will continue to grow without being taxed until the money is removed from the RRIF.
With a RRIF you can't make contributions to it and you must make minimum mandatory withdrawals from it each year.

Minimum Payment Amounts

The Canada Revenue Agency requires that you take a minimum payment from your RRIF each year.
The amount of the payment is determined at the beginning of each year by a calculation the uses your age and the market value of the assets in your RRIF as of December 31 the previous year.

Payments from a RRIF are considered taxable income for the year in which the withdrawal was made.

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