What is a RRIF

By the end of the year in which you turn 71, any RRSP held by you must either be redeemed in full, transferred to an annuity (see your insurance provider) or alternatively, be converted to a Registered Retirement Income Fund (RRIF).

A RRIF puts you in control of your investment and the amount of income it pays you. A RRIF provides the annuitant with periodic income which is taxed at the effective rate for the year of receipt. Although you can set the payment amount, frequency and investment options of your RRIF, there is a minimum annual withdrawal amount set by the Canada Revenue Agency. This is based on your age or that of your spouse, and the amount in the RRIF.

Funds within a RRIF will continue to be income tax sheltered, but you will pay income tax on the withdrawal amounts. Withholding tax may be deducted from your RRIF payment depending on the amount you withdraw. If you stick to the minimum amount required per year, no withholding tax will be deducted. If you receive more than the annual minimum amount for a year, the amount in excess of the minimum is subject to withholding tax, and will be deducted from your payment.

RRIFs are a great way to start paying out the hard-earned money you've been saving. Talk to us about your options today.

What we offer

ECU offers the following investment options for your RRIF:

High Interest Savings Account:

This account pays a higher interest, and remains variable. Withdrawals can be made at anytime throughout the year in addition to the minimum withdrawals set up at the beginning of the RRIF plan.

Guaranteed Investment Certificates (GIC):

You can invest in a GIC for a term of 1 to 5 years. RRIF monthly withdrawals can be pulled from a GIC, but anything over and above the minimum amount set at the beginning of the year will have to come from a variable RRIF account.

Our partner Credential Asset Management Inc. can assist you in investing in mutual funds. Through our online brokerage partner Qtrade Investor, you can invest in mutual funds, stocks and other securities.

Talk to our investment team today to understand your options.

Mutual funds are offered through Credential Asset Management Inc. Online brokerage services are offered through Qtrade Investor, a division of Credential Qtrade Securities Inc.

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