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Registered Retirement Income Fund

Main Features

  • A registered retirement income fund (RRIF) is one of the options available when you are required to start withdrawing from your RRSP or when the RRSP expires upon your 71th birthday.
  • You must withdraw a minimum amount from your RRIF each year and declare it as income. The withdrawal amount is determined by government regulations on the basis of your age and the balance in your RRIF.
  • You can make lump sum withdrawals from an RRIF at any time, provided that the investments cashed in have matured or are liquid.
  • Withdrawals may be made monthly, quarterly, or annually and may be modified (amount or frequency) if your needs change.
  • No income tax is deducted directly from the minimum annual withdrawal amount.
  • All these investments are RRIF eligible: guaranteed investment certificates, stock-indexed deposits, segregated funds, mutual funds, shares, bonds, and deferred annuities.

Major Advantages

  • The balance of an RRIF can grow tax-free for many years after the annuitant retires.
  • You need only withdraw the minimum required by law if economic conditions are unfavorable, then convert your RRIF into an annuity certain or a life annuity when interest rates are higher.
  • In case of death, your RRIF can be transferred to your heirs, who can customize it for their own needs.

To get more information on Registered Plans please click here

Warning: The above text is of general nature and is intended for explanatory purpose only. Each of the products described above has its own specific features. Moreover, only the product contracts contain the complete terms and conditions as well as restrictions and exclusions to which they are subject.