Registered Retirement Income Fund (RRIF)
Regardless of whether or not you require income at retirement,
it is mandatory to convert your RRSP to an eligible retirement income
option by December 31 in the year you turn 71. A Registered Retirement
Income Fund (RRIF) delivers a regular stream of income based on
a minimum annual withdrawal amount.
RRIFs offer several advantages including:
- Money within your RRIF continues to grow tax-sheltered until
it's withdrawn
- Flexibility to control your investments by choosing: payment
amount (subject to a minimum annual withdrawal amount), payment frequency, investment options and liquidation of assets
- The ability to convert an RRSP into a RRIF at any time, regardless
of age
You are required to withdraw at least the minimum amount
from your RRIF on an annual basis. The RRIF minimum payment is based on a formula as prescribed by the Income Tax Act (Canada).
For more information on RRIFs, visit the RBC Royal Bank Retirement site or consult with your advisor.
To learn more about registered investing see below:
