Registered Retirement Income Fund (RRIF)

A RRIF is an investment plan, established in accordance with Government of Canada requirements, into which you can transfer registered funds (usually your RRSP) without tax consequences for the purpose of establishing an income stream for a period of time or for life.

Establishing a RRIF can be done at any time, but must be done no later than December 31 the year the person (annuitant) turns 71. Once a RRIF is established, there can be no more new contributions made to the plan however transfers from other registered products are allowable.

The features of a RRIF include:

  • Converts savings into income while continuing to shelter investments from taxes after age 71
  • Establishing a RRIF can be done at any time but must be done no later than December 31 the year the annuitant turns 71 - at which time all RRSPs must be converted to a RRIF
  • Commencing the year after the plan is opened an annual minimum payment must be taken each year. Members are required to withdraw a minimum amount of income each year based on their age and government regulations
  • There are no maximum withdrawals from a RRIF however any withdrawals over and above the annual minimum payment are subject to withholding tax
  • RRIF payments are considered a part of the beneficiary's normal income and are taxed as such by the Canadian Revenue Agency in the year that the beneficiary receives payments
  • Members may choose from a range of RRIF eligible investments through Aldergrove Credit Union ir Aldergrove Financial Planning (AFP). Product options include a variable account, declining balance terms between six months and five years, and mutual funds (through AFP)

The benefits are:

  • Flexibility – many payment options to suit your needs:
    • Monthly
    • Quarterly
    • Semi-annual
    • Annual
  • Eligible for patronage rebates on interest earned when approved for payment
  • Allows scheduled withdrawals directly from RRIF terms rather than having to keep funds in the variable account which pays a lower rate of interest - withdrawals come from the lowest interest earning RIF product under the contract
  • The Credit Union Deposit Insurance Corporation of British Columbia, a statutory corporation, fully guarantees all deposits.

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