What is a RRIF?

Presented By
CPP Investments | Investissements RPC
What is a RRIF? Why do you need to know this definition? The MoneySense Glossary is your resource for learning and understanding financial terms.
Presented By
CPP Investments | Investissements RPC
What is a RRIF? Why do you need to know this definition? The MoneySense Glossary is your resource for learning and understanding financial terms.
A registered retirement investment fund (RRIF) is an account designed to hold investments transferred from registered retirement savings plans (RRSPs) and certain other registered accounts. Canadians must close their RRSPs by the end of the year in which they turn 71.
Moving investments from an RRSP to a RRIF avoids the need to sell off the investments in the registered account and pay tax on any capital gains. After you open a RRIF, you will be required to withdraw a certain percentage of the balance each year according to your age.
Example: “Like RRSPs, RRIFs allow your investments to grow tax-free; you only pay tax on money withdrawn from these accounts.”
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