RRIF

Are you ready to start withdrawing income from your RRSP?

RRIFs are similar to RRSPs in several respects. Each allows for tax–deferred growth, offers several investment options and are government regulated. You can think of a Registered Retirement Income Fund (RRIF) as an extension of your Registered Retirement Savings Plan (RRSP). Your RRSP is used to save for your retirement while a RRIF is used to withdraw income during your retirement.

A major difference between an RRSP and a RRIF is that with an RRSP, you can make annual contributions as long as you have earned income and contribution room available. Withdrawals are optional and will be taxed. With a RRIF, contributions are not allowed and you must make minimum mandatory withdrawals each year.

RRIF payments are considered taxable income in the year they are withdrawn and will be added to your income for tax purposes. RRIFs are extremely flexible – you may make withdrawals as often as you like and you may withdraw over your minimum annual amount.

You Need Advice & We Can Help.

Professional advice is very important before making this important decision. Let us help you.