RRIFs

A RRIF is a tax sheltered retirement income option for converting RRSP funds. It can provide you with an income to last your lifetime or less, if that is what you prefer. Since this income is spread out over a number of years, there is a possibility of reducing the amount of tax you must pay in the funds that are being redeemed.

Did you know that you do not need to wait until the age of 71 to convert your RRSP to a RRIF? You can convert your RRSPs over at any age. You do not have to take an income payment the year the RRIF was purchased.  After the first year, you must withdraw a minimum annual payment which is based on either your age or your spouse's age, as well as the total value of your RRIF on December 31st. Even though it is mandatory to convert your RRSPs to RRIFs the year you turn 71 converting sooner may be in your best interest. Taking out smaller amounts over more years may reduce your tax bill. Also, income from a RRIF qualifies for the Pension Tax Credit once the holder is 65.

  • your funds remain tax sheltered
  • you are still in control of how they are invested
  • you have the option to withdraw any amount per year above the minimum requirement
  • all money withdrawn is taxed as straight income 

We can help you set up your RRIF and make the right investment decisions to help you relax and enjoy your retirement.