A RRIF is an account designed to provide an annual income in the form of withdrawals from the RRSP during your retirement. Like an RRSP, the assets in the RRIF continue to be tax sheltered until withdrawn.
Canada Revenue Agency (CRA) requires that you take at least a minimum amount out of your RRIF each year, however, you may withdraw more than the minimum if required. The withdrawals are calculated based on your age and the market value in the account (both at January 1st of the current year). If you have a spouse, you may use his or her age to determine the minimum annual payment. While you may make a withdrawal in the year you open your RRIF, you are not required to do so. You have until the end of the year to make your minimum annual withdrawal.
While you are required to take a minimum annual amount out of whichever maturity option you choose, a significant portion of your retirement funds will remain invested for many years. It is important that you not only protect your capital, but ensure that it maintains its purchasing power as the decades pass.
We realize the importance of` having a comprehensive retirement plan. We’ll listen to what you want, work with you to develop a plan that makes you comfortable, and commit to a long-term professional relationship which will provide you with the highest quality advice and service. Whether you are just beginning to plan or your retirement is imminent, now is the right time.
For more information, please read the following Registered Retirement Income Fund Concept Sheet , or contact Jan Canning.
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