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RIF Basics

By December 31st of your 71st birthday year, Canadian law requires that you convert your RSPs to a RIF – an investment plan that establishes a retirement income stream.

What is a Registered Retirement Income Fund (RIF)?

  • A Registered Retirement Income Fund (RIF) is an investment plan – one of the most flexible investment vehicles for your retirement. A RIF is a vehicle for tax deferral that works in similar fashion to an RSP – except now, instead of making annual contributions, you receive income in your retirement years
  • Your minimum RIF withdrawal each year is calculated on a percentage (depending on your age) of the plan’s total value on January 1st each year.   You can withdraw a larger sum at any time
  • While you can convert your RSP savings into a retirement income option at any time before you reach age 71, it is mandatory that you convert all your RSPs by December 31st in the year you turn age 71
  • You may not make new tax-deductible contributions to an RIF

Benefits of a RIF

  • Control how your money is invested
  • Investment growth is tax-sheltered until the money is withdrawn, at which point it is taxed as income
  • Maximize tax deferral opportunities

Learn about flexible RIF investment options

How to calculate RIF Payments

  • With an RIF, you decide how much money you want to receive as income, subject to a legislated minimum income payment
  • Your annual minimum payment is based on your age on January 1st, and is calculated as a percentage of your RIF value at the beginning of each year.  More information

About Locked-In Plans
If you have a Locked-In RSP (LRSP) or Locked-in Retirement Account (LIRA), or your company provides locked-in funds as part of your pension payout, you have the option of converting these savings to a Life Income Fund (LIF), Locked-In Retirement Income Fund (LRIF), or Prescribed Retirement Income Fund (PRIF), depending on the legislation that governed the pension plan. Learn more about Locked-in Plans.



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