Registered Retirement Income Funds (RRIF)

Registered Retirement Income Funds (RRIF), as the name implies, have one function, to provide a flow of income from maturing RRSP contracts. At present, Revenue Canada requires that by December of the year that a person reaches age 69, a decision must be made. Specifically, the decision to close existing RRSPs with a lump sum withdrawal, or to convert existing RRSPs to a RRIF.

Advantages:

• transferable within financial organizations
• different investment options are available
• payments may be received monthly or annually
• may be converted to an annuity
• tax is withheld at the source
• principle may be creditor proof
• customized payment plans (subject to minimum requirements)

Disadvantages:

• access to capitol could reduce principle
• payments are not creditor proof
• payments stop at age 100
• For additional information or answers to specific questions please contact our office.