An option into which RRSP funds may be transferred once a person has reached the age of 69. (See Life Income Fund and Registered Retirement Savings Plan.)
A savings arrangement available from most major financial institutions that accumulates contributions and investment earnings on a tax sheltered basis.
Investors can choose this RRSP maturity option to ensure income for retirement. With a RRIF, investors receive income from the accumulated proceeds of an RRSP and are only taxed on RRIF income as opposed to the complete RRSP savings amount.
Is a government "Registered Income Retirement Fund," which is set up with proceeds from an "RRSP." In a "RRIF" fund a minimum amount of money must be withdrawn annually. This is done in accordance with a set formula. Contributions to a "RRIF" are not permitted. Under certain conditions, transfers from other registered plans are allowed.
A government-registered plan that allows your investments to grow tax-sheltered while you are in retirement. Your money remains tax-sheltered until it is withdrawn as retirement income and becomes taxable. Minimum annual withdrawals must be made. By rolling your RRSP into a RRIF, you can keep the same investments as you had in your RRSP.
An extension of an RRSP, the RRIF is an investment vehicle that allows a person to continue to shelter retirement savings from tax until the funds are withdrawn as income. You cannot contribute to an RRIF and must withdraw a minimum amount each year commencing the year after you open the plan.
RRIF enables the annuitant to gradually withdraw their registered funds and to pay taxes only on the portion withdrawn each year. RRSP must be converted to a RRIF or an annuity must be purchased by December 31 of the year in which the contributor turns 69. This conversion has no tax repercussions. The balance or a portion of the RRIF may be converted to an annuity at any time.
A registered plan allows you to save for your retirement while lowering your taxes. The amount of money you contribute into an RRSP reduces the amount of income you pay taxes on. As well, the interest or investment income the investments inside the RRSP make is also tax-free. You don't pay tax until you withdraw your savings from the account.
The most flexible RRSP maturity option, the self-directed Registered Retirement Income Fund (RRIF) is the preferred retirement vehicle available to today's investor. A RRIF is essentially an extension of your RRSP as you can hold virtually all of the same investments, have the same amount of control and continue to enjoy the benefits of a tax shelter. The difference between the two is that an RRSP is used for the accumulation of funds and a RRIF for minimum annual withdrawals. The plan-holder invests the funds in the RRIF and must withdraw a certain amount each year. Income tax is due on the funds withdrawn.
A retirement savings plan that has been converted to an income plan according to government regulations. It is an account that requires you to withdraw a specified minimum amount each year. Investments in the plan continue to grow tax-free.
A RRIF is a tax deferral vehicle available to Registered Retirement Savings Plan (RRSP) holders who de-register their plans. The plan holder invests the withdrawn RRSP funds in the RRIF and each year must withdraw and pay income tax on a set fraction of the total assets in the fund.
A fund set up with proceeds from an RRSP to provide income during retirement.
A type of registered plan that allows an individual to withdraw a stream of income from the savings or investments previously held in an RSP. The principal remains tax-sheltered until withdrawn from the plan as income.
A Registered Retirement Income Fund (RRIF) is similar to an RRSP except that you cannot make contributions, and you are required to withdraw a minimum amount each year.
A personal retirement income fund offered by financial institutions. A RRIF is used to provide an ongoing minimum flow of income. The minimum withdrawal amounts are determined by the Income Tax Act. RRIFs are governed by the Income Tax Act. Transfers to RRIFs from federally registered pension plans are not permitted.
A retirement income option for people who want to make their own decisions. It is the most flexible of all retirement income plans, as you control both the amount of monthly/annual payments to you, and the type of investment. Funds for a RRIF must be transferred from an RRSP, another RRIF, a Registered Pension Plan or a commuted RRSP annuity.
A maturity option available for RRSP assets to provide a stream of income at retirement.
Much like a Registered Retirement Savings Plan in reverse. It does not permit annual contributions and the resulting tax deductions that an RRSP does, but requires the withdrawal of certain amounts each year. Otherwise an RRIF operates much the same way as an RRSP. Once amounts are withdrawn from a RRIF, they are subject to income tax at the recipient's marginal tax rate.
A Registered Retirement Income Fund or RRIF is a tax-deferred retirement plan under Canadian tax law. Individuals use an RRIF to generate income from the savings accumulated under their Registered Retirement Savings Plan. As with the RRSP, an RRIF account is registered with the Canada Revenue Agency.