Belmont Village Financial Group RRIF Registered Retirement Income Fund Wealth Management

Registered Retirement Income Fund (RRIF)

What is a Registered Retirement Income Fund?

A Registered Retirement Income Fund (RRIF) is an extension of your Registered Retirement Savings Plan (RRSP). While your RRSP is used to save for your retirement; a RRIF is used to withdraw income during your retirement.

RRIFs are similar to RRSPs in several respects. Each allows for tax–deferred growth, offers several investment options and are government regulated.

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.

When to create a RRIF 

An RRSP is required to be converted to a RRIF by December 31 of the year in which you turn 71. However, you do have the option to convert your RRSP to a RRIF at anytime before then.

How does a RRIF work? 

The Canada Revenue Agency (CRA) requires that you take minimum payment out of your RRIF each year. That amount is determined at the beginning of each year by a calculation that uses your age and the market value of the assets in your account as of December 31 of the previous year.

RRIF payments are considered taxable income in the year they are withdrawn and will be added to your income.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

Contact us today to discuss your RRIF options at 519-744-3020 or email

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