RRIFs

The RRIF is a flexible payout of the lump sum of money, which you have accumulated in your RRSP. It is almost the opposite of an RRSP, in that you have to withdraw a minimum of capital each year from a RRIF whereas you made capital deposits each year to your RRSP. The payments made to you from a RRIF are taxable. But the investment in a RRIF continues to grow tax free until they are withdrawn.

The Registered Retirement Income Fund, is the most popular option chosen when converting RRSP’s at age 69 into retirement income.

By the end of the year when you turn 69, you have to choose one of the following options for your RRSPs:

  • Withdraw them
  • Transfer them to a RRIF
  • Use them to purchase an Annuity for life
  • Use them to purchase an Annuity spread over a number of years.

RRIF

In order to avoid a huge tax bill at the end of the year you must set up your RRIF by December 31 of the year in which you turn 69.

A RIFF can be tailored to meet your income needs because it allows you to choose the level of the payment, subject to a minimum amount, but not subject to the maximum.

If you would like to have more detailed information, please contact us.

Additional Resources