Once you turn 71, your RRSPs must be converted to a RRIF. Your investment continues to grow tax-sheltered and you choose the frequency and payment amount you receive. You can withdraw funds as often as you like however they will be subject to tax implications. Upon death, your RRIF can be transferred tax-free to your spouse, providing they were named as the beneficiary.
Benefits and Guidelines of a RRIF
While an RRSP can be converted into a RRIF at any age, this must be done by the end of your 71st year
The Canada Revenue Agency requires a minimum withdrawal by Dec 31st the following year
This amount is calculated by a percentage of the RRIF balance on Dec 31st each year
You must designate a beneficiary for your RRIF. Choose a Primary and Alternate Beneficiary as this will help with your Estate Planning upon death
RRIFs can be invested into any one or combination of the following products – Term Deposits (Guaranteed Investment Certificates) with OCCU or Mutual Funds, Stocks and Electronic Traded Funds through our partners QTrade and/or VirtualWealth