RRIF
A Registered Retirement Income Fund (RRIF) is a retirement income plan that receives beneficial treatment under the income tax system. A RRIF provides a vehicle that individuals may use to convert RRSP savings, which they have accumulated during their working years, into retirement income.
By the end of the year when individuals turn 71 years of age, they must make arrangements to start using their RRSP savings to provide for a retirement income: by transferring the savings to a RRIF or by buying a life annuity from a financial institution. The total amount in an individual’s RRSP can be transferred to a RRIF without any income tax being paid. This means that the RRSP contributions and the income on them will only be taxable when withdrawn from the RRIF.
Interest is calculated daily and accrued annually. Investment Statements and T4RIF’s are sent out annually (after December 31).
Transfers from other financial institutions are available upon request.
For additional information on Registered Retirement Income Funds:
Visit the Canada Revenue Agency website:
Registered Retirement Income Fund Withdrawal Rules