What is a RRIF and how is it different from an RRSP?

A Registered Retirement Income Fund (RRIF) is what your RRSP becomes when you retire and start drawing income. Unlike an RRSP, RRIFs require minimum annual withdrawals.

When must I convert my RRSP to a RRIF?

You must convert your RRSP to a RRIF by the end of the year you turn 71. Income withdrawals must begin the following year.

How are RRIF withdrawals taxed?

RRIF withdrawals are taxed as income in the year you receive them. There is no withholding tax on the minimum required withdrawal, but any amount over that will be taxed at source.

Can I split RRIF income with my spouse?

Yes. Canadians over 65 can split up to 50% of eligible RRIF income with their spouse to reduce taxes and avoid OAS clawbacks.

What happens to my RRIF when I pass away?

If you name a spouse as beneficiary, your RRIF can roll over tax-deferred. Otherwise, the full balance is taxable in your final return.

RRIFs by Craven Financial Planning

Discover how a Registered Retirement Income Fund (RRIF) in Canada can help you manage your retirement income.

Grow Your Savings

With tax-deferred growth on your retirement funds, a Registered Retirement Income Fund (RRIF) is an essential tool for managing retirement income. RRIFs allow you to continue growing your investments while withdrawing funds to support your lifestyle. Whether you’re converting an RRSP or managing other retirement assets, a RRIF provides flexibility and control over how and when you withdraw your savings.

Common Questions and Answers:

What investments can I hold in a RRIF?
Stocks, bonds, mutual funds, ETFs, and GICs are allowed within a RRIF.
How does a RRIF help grow retirement savings?
Your investments grow tax-deferred while you manage regular withdrawals.
What strategies maximize RRIF income?
Diversify your investments and plan withdrawal schedules to optimize tax efficiency.

Ready to optimize your RRIF? Contact Financial Planner William (Bill) Craven today for personalized retirement income strategies.

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A Registered Retirement Income Fund (RRIF) is a powerful tool that allows you to convert your RRSP savings into a tax-deferred account, providing a steady stream of income during retirement.

Frequently Asked Questions about RRIFs

1. What is a RRIF in Canada?

A Registered Retirement Income Fund (RRIF) is a retirement account that provides regular income by converting RRSP savings into withdrawals, with continued tax-deferred growth.

2. When do I need to convert my RRSP to a RRIF?

You must convert your RRSP to a RRIF by the end of the year you turn 71.

3. How do RRIF withdrawals work?

You must withdraw a minimum annual amount from your RRIF, based on a percentage of its value, but you can withdraw more if needed.

4. Are RRIF withdrawals taxable?

Yes, all withdrawals from a RRIF are taxed as income in the year they are taken.

5. What investments can I hold in a RRIF?

You can hold a variety of investments, including stocks, bonds, mutual funds, GICs, and ETFs.

6. Can I contribute to a RRIF?

No, once a RRIF is established, you cannot make additional contributions. It's funded by transferring assets from an RRSP or other registered plans.

7. What happens to a RRIF when I die?

Upon death, a RRIF can be transferred to a spouse's RRIF tax-free or is otherwise taxed and included in the deceased's final tax return.

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