Registered Retirement Income Funds (RRIFs)

By December 31st of your 71st birthday year, Canadian law requires that you convert your RRSPs to a CRA approved product. A RRIF is such a qualified investment product that holds your retirement savings and provides income after you retire. Investment growth in RRIFs is tax-sheltered until the money is withdrawn.

Taxpayers are required to withdraw a portion of the plan over a sufficient number of years so you can reduce your rate of tax on income and match to your personal life expectancy. For some, a RRIF withdrawal schedule from age 60 to 90 is ideal, for others, a schedule from age 65 to 85 is the best fit. You are also permitted to use a schedule based on the age of the younger spouse.

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