Registered Retirement Income Fund (RRIF)
A Registered Retirement Income Fund (RRIF) is an account registered with the federal government that gives you a steady income in retirement. Before, you were putting money into your RRSP to accumulate savings for retirement. Now, you withdraw that money from your RRIF as retirement income.
6 things to know about RRIFs
- You can open a RRIF anytime, but no later than the end of the year you turn 71.
- You open a RRIF by transferring money from your RRSP. Transfers from other registered plans like pension plans and DPSPs are allowed under certain circumstances.
- Once the RRIF is set up, you can’t make any more contributions to the plan. However, you can have more than one RRIF
- You choose the types of investments to hold in a RRIF. Examples: GICs, segregated funds, stocks and bonds.
- You must take out a minimum amount from your RRIF each year. This amount increases as you get older. There is no maximum withdrawal limit.
- If any money is left in your RRIF when you die, it will go to your named beneficiaries or to your estate