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 a shorter predetermined period of time if you’d prefer. Since this income is spread out over a number of years, an opportunity to reduce the amount of tax you must pay on the funds being redeemed is possible.
We offer a wide variety of flexible RRIF options at competitive interest rates, with no startup, annual administrative or service fees. You set the payment schedule from your RRIF, and changes can be made over time at your discretion, subject to minimum withdrawal requirements.
Did you know?
You don’t need to wait until Age 71 to convert your RRSP to a RRIF. Conversion can occur at any age. You don't have to take an income payment the year the RRIF was purchased either. However, after that 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.
Although 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 ultimate tax bill. Also, income from a RRIF qualifies for the Pension Tax Credit once the holder is 65. To find out what strategy might be best for you, come see one of our staff today!