Registered Retirement Income Fund (RRIF)

You've spent years planning for your retirement. Now you can plan to enjoy the income from those savings. One of the retirement income options available to you is a Registered Retirement Income Fund (RRIF).

How does an RRIF work?

• Your RRSP accounts must be closed in the year in which you turn 71. Rather than declaring all of the funds previously held in your RRSP as taxable income, an alternative is to transfer these funds into a RRIF.
• While holding a RRIF you cannot make new contributions into it and you must withdraw a minimum amount each year, starting the year after you establish the RRIF.
• Minimum RRIF withdrawals are based on the market value of the fund as of December 31 of the previous year and age. There is no maximum limit for withdrawals from this plan.
• The benefit of converting an RRSP into a RRIF is that the income generated in the plan is tax-sheltered. Withdrawals, however, are taxable.
• Prior to the first payment being received from a RRIF, you may choose to use your spouse's age (if your spouse is younger than you) rather than your own age to determine the minimum payout amount. Once made, the choice is permanent.

Converting your pension plan to an income fund

Key benefits of an RBC Direct Investing RRIF:

• Create a diversified portfolio with access to a broad selection of investments including stocks, exchange traded funds (ETFs), guaranteed investment certificates (GICs) (from over 30 providers), mutual funds (from over 100 fund companies), options, bonds and more
• No commissions when you buy or sell mutual funds
• Low commissions with trades starting from as low as $6.95 to $9.95 flat
• Hold and settle trades in U.S. and Canadian dollars and save on foreign exchange conversion
• No maintenance fee when you hold combined assets of $15,000 or more across all of your RBC Direct Investing accounts
• Access to innovative tools and the latest research to help you make confident investment decisions
• At RBC Direct Investing you can convert your RRSP or pension funds to a self-directed RRIF, LIF, LRIF or PRIF account quickly and easily
• Choose your payment frequency and dates: monthly, quarterly, semi-annually or annually at mid-month or month-end
• Deposit funds to your RBC Direct Investing investment account, your RBC Royal Bank savings or chequing accounts, or to an account at another Canadian financial institution
• Flexible withdrawal amounts
• Withdraw an additional two lump sum payments per year, with no withdrawal fee
• Avoid large tax payments at year end by having more than the minimum amount of tax withheld from each excess payment or choose to have taxes withheld from your minimum amount