Registered Retirement Income Funds (RRIFs)
A RRIF provides you with a way to receive regular income from your matured Registered Retirement Savings Plan (RRSP), while enabling you to continue to defer income tax on the undrawn portion.
RRIFs convert your retirement savings into a steady income stream during retirement. Rather than paying income tax on the entire sum of your savings, with a RRIF, you're taxed only on the amount you take into income during that year, at your prevailing marginal tax rate. The balance of your retirement savings remains sheltered from tax and continues to grow.
While you do not contribute directly to a RRIF, funds can be transferred from an RRSP, another RRIF, a Registered Pension Plan, or a commuted RRSP annuity. At age 71, all RRSP investments must be converted to a RRIF or annuity, or cashed.
RRIFs are similar to an RRSP with the exception that plan holders are required to take taxable payments from the RRIF on an annual basis. You choose the payment level as long as it meets the minimum levels set out by the government. RRIF options available at IC Savings include:
RRIFs convert your retirement savings into a steady income stream during retirement. Rather than paying income tax on the entire sum of your savings, with a RRIF, you're taxed only on the amount you take into income during that year, at your prevailing marginal tax rate. The balance of your retirement savings remains sheltered from tax and continues to grow.
While you do not contribute directly to a RRIF, funds can be transferred from an RRSP, another RRIF, a Registered Pension Plan, or a commuted RRSP annuity. At age 71, all RRSP investments must be converted to a RRIF or annuity, or cashed.
RRIFs are similar to an RRSP with the exception that plan holders are required to take taxable payments from the RRIF on an annual basis. You choose the payment level as long as it meets the minimum levels set out by the government. RRIF options available at IC Savings include:
- Variable Rate Deposits
- Fixed–Rate Term Deposits (1-5 years)