If you have an RRSP and you’re nearing your 72nd birthday, it may be time to switch to a registered retirement income fund. Find out how it works.
A registered retirement income 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.
Instead of converting an RRSP to a RRIF, you also have the option to cash out your RRSP or buy an annuity.
Example: “Like RRSPs, RRIFs allow your investments to grow tax-free; you only pay tax on money withdrawn from these accounts.”
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Canadian citizens who work in the U.S. have to meet Canadian and U.S. tax filing requirements. Here’s what to...
Mortgage protection can be a good idea, if for instance you have a condition or illness that might make...
A guide to critical illness insurance—why many Canadians are looking into this kind of insurance policy. Find out what...
Critical illness insurance isn’t the same as disability insurance. Here’s what else to keep in mind when deciding how...
Disability insurance can be a life saver if you’re seriously ill or injured. Here’s how it works.
Which ETFs should you invest in? Which ones best suit your risk tolerance? What about personal ethics? Check out...
Inflation ticks up in August, the U.S. Fed decides not to raise rates, IPOs make a comeback, what the UAW...
Created By
Canadian Financial Summit
How does your credit card debt stack up against the average Canadian’s? Find out as we dive into how...
