A Registered Retirement Income Fund (RRIF) is a registered account designed to give you income flow in retirement. Think of a RRIF as a Registered Retirement Savings Plan (RRSP) in reverse – RRSPs allow you to accumulate tax-sheltered savings for retirement, while your RRIF generates a taxable retirement income stream from these savings – which still continue to grow and remain tax-sheltered.

Did you know?

  • An RRSP can be rolled into a RRIF at any time, but you are not required to do so until the end of the year in which you turn 71 years of age; at which time, the RRSP matures and must be converted to either a life annuity or a RRIF, or deregistered.
  • Life Income Funds (LIFs), Locked-in Retirement Income Funds (LRIFs) and Prescribed RIFs (PRIFs) are locked-in versions of Registered Retirement Income Funds (RRIFs). They are designed to generate retirement income from monies transferred from a pension plan, LIRA, or locked-in RRSP.
  • To convert an RRSP to a RRIF, a RRIF account needs to be set up first and then assets from the RRSP can be transferred over ‘in kind’ without incurring a taxable transaction.
  • A final RRSP contribution can be made until December 31 in the year that you turn 71 years of age.
  • When you die, your RRIF can be taken over by your surviving spouse without interrupting payments, if named as your successor annuitant. Alternatively, your RRIF can be transferred to your surviving spouse tax-free, if named as your beneficiary. In either case, the value of your RRIF will not be included in your estate when calculating probate fees.

RRIF Benefits

  • Consistency – Your RRIF can deliver a continuous stream of income during retirement
  • Personalized – You choose how the money within the RRIF is invested
  • Efficient – Investments can continue to grow on a tax-free basis within the plan
  • Seamless – Income tax on the amount transferred from your RRSP is deferred until a withdrawal is made from your RRIF