Is your RSP or pension plan maturing sometime soon? Are you celebrating your 71st birthday this year?
Investment choices, flexibility and continued earning power are important when managing your retirement income. Convert your RSP or pension funds to an RBC Direct Investing self-directed RIF, LIF, LRIF or PRIF account quickly and easily using the download and print forms in our Account Opening Centre.
The benefits of an RBC Direct Investing Self Directed Income Fund Account
 Choose the investments that best suit your retirement objectives. We offer among the widest selection of fixed income and mutual fund investment alternatives in Canada.
There is no annual administration fee for an RBC Direct Investing RIF if you maintain a balance of $25,000 or more. If your balance is less than $25,000, you pay a low annual administration fee.
Flexible Payment Options
Choose your payment frequency & 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 account, or to an account at another Canadian financial institution.
Flexible Withdrawal Amounts
Use your age or your spouse's age to set up smaller minimum payments so you can maximize tax deferral on the assets in your RBC Direct Investing Self-Directed RIF. (Not applicable to LIF and PRIF).
Choose to receive payments larger than the annual minimum amount. Pension legislation prescribes maximum annual withdrawal amounts for the LIF and LRIF. There is no maximum withdrawal amount for the PRIF or RIF.
Withdraw a maximum of two lump sum payments in addition to your regular minimum payment, 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.
Converting your pension plan to an income fund
A Life Income Fund (LIF) is an alternative to a life annuity for the money that you and your employer contributed to a pension plan on your behalf. You may have already transferred your pension funds to a Locked-in Retirement Account (LIRA). An LIF will turn your funds into flexible income until the end of the year you turn age 80 (except in Quebec, New Brunswick, Nova Scotia, Alberta, Saskatchewan, Manitoba, British Columbia, Ontario and Federal, where a LIF has no maximum age restriction), at which time you must purchase a life annuity.
A Locked-in Retirement Income Fund (LRIF) is available only if you have pension money that was contributed when you worked in Manitoba, Newfoundland and Labrador or Ontario. LRIFs are similar to LIFs, with the exception that funds do not have to be converted to a life annuity at age 80. An LRIF can provide you with the benefits of tax-deferral for your lifetime.
A Prescribed RRIF (PRIF) is available for Saskatchewan and Manitoba pension plan members only. You can transfer money to a PRIF if your locked-in pension money originated with a pension plan subject to The Pension Benefits Act of Saskatchewan or Manitoba. The PRIF replaces the Life Income Fund (LIF) and Locked-in Retirement Income Fund (LRIF), providing you with greater financial flexibility upon retirement, including no maximum annual withdrawal. You are not required to convert to an annuity at age 80. (For Manitoba, only 50% may be transferred from a LIF or LRIF to a PRIF.)
With an RBC Direct Investing LIF, LRIF or PRIF you have access to the same investment choices as the Self-Directed RIF. There is NO FEE if your balance is $25,000 or more. If your balance is less than $25,000, you pay a low annual administration fee of $75 - and if the fee does apply, you only pay it once, no matter how many RBC Direct Investing RIFs, LIFs or LRIFs are registered in your name.
Converting your RSP or pension fund
Set up an RBC Direct Investing Self-Directed RIF, LIF, LRIF or PRIF account quickly and easily using the download and print forms in our Account Opening Centre.
You will be provided with forms to convert the following types of accounts:
Registered Retirement Account Transfer Form
Pension Transfer Form
- DPSP to RRSP
- RPP to RRIF
- RPP or DPSP to RPP
- DPSP to a DPSP as a beneficiary
You'll also find additional required Addenda and Spousal Consent forms as required by provincial and federal governments.
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Make the right move and start enjoying the speed, security and reliability of RBC Direct Investing. |
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