Registered Retirement Income Fund (RRIF)
Your savings, working for you.
A RRIF uses the savings from your Registered Retirement Savings Plan (RRSP) to provide you with retirement income. It also offers you the flexibility to make RRIF withdrawals on a schedule based on your retirement goals while enjoying the benefits of tax-deferred growth.
Personalize to your needs
RRIF’s offer a steady income stream in retirement. They allow for flexibility and customization, helping ensure your retirement is exactly what you planned.
Grow your savings tax-deferred
Your RRIF can continue to grow tax-deferred, similar to an RRSP. However, a RRIF requires you to withdraw at least a minimum amount each year as income.
Customize the right investment mix for you
A RRIF offers choice and variety so you can create a custom portfolio to help you reach your goals. You can hold various investment types including stocks, bonds, GICs, ETFs and mutual funds.
How much do I have to withdraw from my RRIF each year?
The government mandates a minimum annual withdrawal from RRIFs based on your age and the total value of your RRIF at the beginning of the year. This is determined via a prescribed factor or schedule. If you are younger, the minimum percentage is lower; as you age, the minimum percentage increases. If you fail to withdraw at least the minimum in a year, there may be penalties or tax consequences.
Can I make additional contributions to a RRIF?
No. A RRIF is not like an RRSP: once funds are in a RRIF, you generally cannot add new contributions. It’s intended as a drawdown vehicle, not a savings vehicle. Any additional contributions would have to be made to an RRSP (if you still have contribution room). The conversion from RRSP to RRIF is typically the mechanism for funding.
What's the deadline to contribute to my RRIF?
Yes. The minimum withdrawal must generally be made by the end of each calendar year. Some plans may require a specific date (e.g. December 31). If you delay, you risk not meeting your minimum, which can result in penalties or tax consequences. Also, when you initially convert from RRSP to RRIF, that conversion should occur before December 31 of the year you wish to begin withdrawals.
Start investing in your RRIF today!
Book an appointment at your preferred Kawartha branch and speak with your advisor to discuss how a RRIF can help make your retirement a comfortable one.
