What is a Registered Retirement Income Fund (RRIF)?
A Registered Retirement Income Fund (RRIF) converts your Registered Retirement Savings Plan (RRSP) into retirement income.
How does it work?
- Convert your RRSP to RRIF at anytime (Deadline: December 31 of the year you turn 71)
- Choose how you will invest your money once you withdraw it
- You must withdraw the minimum annual amount set by the government, but there is no set maximum amount
- Anything you withdraw is taxable as employment income
What is the difference between a registered retirement income fund (RRIF) and a lifetime income fund (LIF)?
A RRIF:
- Converts your RRSP into retirement income
- Has minimum annual withdrawal amounts
- Does not have maximum annual withdrawal amounts
A LIF:
- Converts your pension plan into retirement income
- Has both minimum and maximum withdrawal amounts