Registered Retirement Income Fund -- RRIFA RRIF (Registered Retirement Income Fund) is one of the choices you have to convert your RRSP to at age 71. Similar to an RRSP with one big difference -- instead of putting the money away -- you now must withdraw the money as an income stream. Each year (in January) the government determines the minimum amount you must withdraw for that year. You are of course entitled to withdraw more should you wish to. Each dollar you withdraw is taxed at your full marginal tax rate (MTR). You can -- of course -- end your RRSP and convert any time before age 71, but age 71 is when the government demands you end your RRSP. Sometimes folks believe the investments held within a Registered Retirement Income Fund need to be something different than was held within the RRSP. This is not so. Anything eligible for an RRSP is Ok for a Registered Retirement Income Plan. (except maybe locked-in G.I.C.s which normally can’t be withdrawn) That important thing to remember is -- at age 71 you must end your RRSP. Your best bet is to make sure you talk with a financial advisor well before that age 71! So that you have the time needed to make the right decision of how to end your RRSP the best way for you. Return from RRIF to Retirement Savings Accounts
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