What is a RRIF?

A Registered Retirement Income Fund (RRIF) is a common way to turn your retirement savings into income through RRSP contributions over the years.

When it comes time to convert RRSPs to income, most Canadians choose a RRIF as their retirement income option. A RRIF is an extension of an RRSP. The fundamental difference is that an RRSP is a tax-free savings plan used to invest for your retirement, while a RRIF is a tax-sheltered account that allows you to withdraw income during retirement.

A RRIF provides:

• A high level of control over the investments in your retirement plan
• The advantage of tax-free growth of assets
• Maximum flexibility when establishing an income stream

Even if you do not need periodic income or any income at all, you must convert your RRSP into income in the year that you turn age 71.