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Registered Retirement Income Fund (RRIF)

A Registered Retirement Income Fund (RRIF) is an RRSP in reverse. An RRSP is a savings plan that you contribute to, a RRIF is an income distribution plan that provides you with a payment.

Converting your retirement savings to a RRIF allows you to continue receiving similar tax benefits as you would with your RRSP. An RRSP can be rolled into a RRIF at anytime, but you are not required to do so until the end of year in which you turn 71.

BENEFITS

  • A constant stream of income during retirement

  • RRIF payments are similar to personal pension plan payments

  • Investments continue to grow on a tax-free basis within the plan

  • Income tax is deferred on the amount transferred until a withdrawal is made and you choose how the money within the RRIF is invested

 

ANNUAL WITHDRAWALS FROM A RRIF

You must withdraw a minimum amount from the RRIF each year after the RRIF is opened. The minimum is based on a set formula that takes into consideration your age or your spouse's age and the market value of the account on January 1 of the withdrawal year.

 

ROLLOVER BASICS

  • An RRSP can be rolled into a RRIF at any time, but you are not required to do so until the end of the year in which you turn 71; at which time the RRSP matures and must be converted to either a life annuity or a RRIF, or deregistered.

  • To convert an RRSP to a RRIF, a RRIF account needs to be set up first and then assets from the RRSP can be transferred over "in kind", without incurring dispositions.

  • A final RRSP contribution can be made until December 31 in the year that you turn 71.

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REGULATED BY MUTUAL FUND DEALERS

ASOCIATION OF CANADA

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www.mfda.ca

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Mutual Fund Disclosure:

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus and/or fund facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 
Insurance Disclosure:

Subject to any applicable death and maturity guarantee, any part of the premium or other amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value according to fluctuations in the market value of the assets in the segregated fund. A nominee account is one in which an investment is held in trust for an individual by a corporation or entity other than the individual. A segregated fund policy held within a self-directed plan is one example of investing in a nominee account. A segregated fund held in a nominee account may not offer creditor protection. Please read your Information Folder carefully and seek professional advice before investing. Commissions, trailing commissions, management fees and expenses may be associated your insurance contract. 
*Insurance products and services provided through Carte Risk Management Inc., Carte Financial Services Inc., Custom Benefits Inc., Financial Horizons, and Great West Life. 
**Mutual funds provided through Carte Wealth Management Inc.

Copyright 2019 © Blue Harbour Financial Inc.

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