Converting your account to a RRIF or LIF

You may have spent many years saving for your retirement using a traditional Registered Retirement Savings Plan (RRSP) or with a type of Locked in Retirement account (LIRA, LRSP, etc).

Now you’d like to start withdrawing your funds, and enjoying your retirement, how does the process work?

In the year that you turn 71, you’re required to convert your RRSP or LIRA account into a corresponding RRIF or LIF account. Please see the Government of Canada’s website for more information.

Because this is an Income Tax Act requirement, it must be done before the end of the calendar year (Dec 31st).

• Learn more about RRIFs in our Registered Retirement Income Fund article, or on the CRA’s website.
• Learn more about LIFs in our Life Income Fund article.

There is no minimum age for converting an RRSP to a RRIF, but the minimum age for a LIRA and most former pension plans is 55. Some exceptions may apply in special circumstances.

Generally, most investors will choose to “roll-over” or convert their accounts, rather than make a full withdrawal. This is because when an RRSP or LIRA is converted or “rolled over”, there is no withholding tax deducted. Your investments can also be transferred “in-kind” (as is) to the new retirement “income” account.

Note: This article is for informational, educational purposes only, and should not be taken as any form of investment, or tax advice. Please speak with a tax professional, or retirement planner for more information suited to your specific situation.

The main difference between retirement savings accounts (like the RRSP, or LIRA) and retirement income accounts (RRIF, LIF) is that with retirement income accounts, a minimum withdrawal, or “payment” must be made each year to the account holder.

This payment is designed to provide income to investors during retirement, and the minimum amount increases every year as you get older based on a formula determined by the CRA. Please see the payments section below for more information.

You also cannot make new deposits (contributions) into a retirement income account like the RRIF or LIF. They are designed only to provide income, and to continue investing your assets during retirement.

• How to get started
• Submitting your documents and payment options
• What is the Statement of Acceptance?
• Submitting your government-issued photo ID
• What do I need to know about my RRIF/LIF application?
• Do I need to provide an Addendum form?
• How do I receive RRIF payments?
• Starting the rollover of investments to your RRIF or LIF
• Important notes about future RRIF/LIF payments

The first step in converting your RRSP to a RRIF (or LIRA to LIF) is to open a new RRIF (or LIF) account. Here's what you need to do:

1. Log in to your Questrade account.
2. Head to your Profile (Click your name at the top right, then Profile)
   • Important: Make sure your information is current and accurate, and save any changes
3. Go to the Summary page and click + New account.
4. If you’re opening a Questwealth account, click the option at the bottom, you will choose the type (RIF or LIF) after the investor questionnaire
5. If you’re opening a Self-Directed account, click See more account types at the top, and then click Retirement
6. Under Retirement, select the following:
   • Registered Retirement Income Fund (RRIF), if you currently hold an RRSP
     
   • Life Income Fund (LIF), if you currently hold a LIRA
7. Complete and submit the online application. The information will be pre-filled from your Profile, and you will be asked to confirm certain selections for your new account (participants, shareholder communication options, etc..).
8. After accepting the account and customer agreements, you will be asked to Sign and submit your documents

If you require any assistance during your account setup, feel free to contact our New Accounts team via Live chat, or at 1.888.783.7866 for help.

Most account applications now support E-signatures through Docusign, if this is the case, please click the green Sign button next to the required documents, and follow the process.

For certain account types and documents, hand-signatures are required. If this is the case you will see an option to download all forms.

Every new RRIF account requires the following documents:

• Statement of acceptance
• Government-issued photo ID
• RRIF/LIF application

LIF, LRIF, and RLIF accounts will also require an addendum form.

This is the general account and customer agreement for all Questrade accounts. This is the same agreement regardless of account type.

Some statements of acceptance can be E-signed, if this is the case, simply click the green Sign button next to the required documents, and follow the process.

Other statements of acceptance will need to be hand-signed.

• Download and print your forms
• Initial page 2
• Sign and date page 3

See Uploading documents to your account for more information on submitting your printed forms online.

Check out our comprehensive guide on acceptable forms of ID, and how to easily upload from your phone or PC.

This form usually needs to be printed and hand-signed, and will be pre-filled with your personal information from your Questrade profile. Please complete any missing sections in the account holder and spousal information. (You can also use a secure E-signature through Adobe, or other similar software)

In the Payments section, please choose whether you’d like to use your age or your spouse’s age (if applicable) to calculate the minimum required payments (a higher age equals a higher minimum payment).

The Total annual payment amount will ask if you’d like to take the minimum payment required under the Income Tax Act or a higher amount. Higher amounts are subject to withholding taxes, and any and all payments may count against your total income for the year.

The minimum amount payable is calculated based on the account holder’s (or their spouse’s) age.

It’s the total balance of the RRIF multiplied by the Prescribed factor set out by the CRA.

RIFs (in most cases) do not have a maximum withdrawal amount. If you wish, you can withdraw the full balance of the account the year after it’s opened. Remember: Withholding taxes would apply to the gross withdrawal amount.

LIF and RLIF (or LRIF) accounts may also have yearly maximums for payments. These are determined by the federal or provincial pension legislation that the plan originated from.

These maximum amounts may change from year to year, and differ significantly from plan to plan depending on the pension legislation.

Please contact a tax professional or retirement planner for more information specific to your individual circumstances. Questrade cannot provide any form of tax or investment advice regarding your payments and the tax consequences of them.

You will also be asked to choose your Payment frequency. Please select if you’d like your payments:

• Monthly
• Quarterly (every 3 months)
• Semi-Annually (every 6 months)
• Annually (once a year)

You can also choose when your payments will commence (or begin). This will be the date of your first payment, and all subsequent payments will be determined by this date. You can also choose to change your payment frequency, method, and amount later on by completing and uploading the “Change RRIF/LIF Payment Schedule” form.

At the bottom of the second page, please make sure to complete the “Dated at” and “Province of” fields, then sign and date the form. (For example: Dated at “Vancouver”, Province of “British Columbia”,)

The addendum form simply outlines that the new registered retirement income account (RRIF or LIF) is under the same pension legislation as your former LIRA or LRSP account.

Make sure to complete the Client Name and Name of Annuitant fields on the first page. (Annuitant means the person receiving the tax benefit from the account, in most cases this is the account holder.)

You will also need to check if the annuitant is either a:

• Member or a former member of the pension plan from which the funds in the account originated.
• Surviving spouse or former spouse of a member or former member of the pension plan from which the assets originated.

Please print your name, then sign and date the very last page of the addendum form.

Once you’re finished, please upload every page with your account application.

Most investors choose to receive their payments via electronic fund transfer or EFT. This is completely free, and the default, recommended option for all customers. EFT payments arrive at your designated bank account within 2-4 business days.

If you’ve withdrawn from your Questrade accounts in the past, and have provided a void cheque, or direct deposit form, we can use that information for your RRIF or LIF payments.

If you haven’t withdrawn from your accounts, or would like to designate a different bank account, please upload a new direct deposit form or void cheque to the new RRIF or LIF account.

Once you’ve submitted all your required documents and banking information, please contact our new accounts or client services team via live chat, or on the phone at 1.888.783.7866 to finalize the rollover process.

Keep the following tips in mind when rolling over:

• The process to convert an RRSP to a RRIF may take between 3-4 business days. During this time we ask that you do not place any trades in the RRSP/LIRA account unless absolutely necessary. Once the assets have transferred, you can begin trading in the new RRIF or LIF right away.
• Investments in a Self-directed RRSP or LIRA do not have to be sold when rolling over to a new RRIF or LIF. Everything can be transferred as-is or “in-kind”.
• If you have any open orders to buy or sell in the RRSP/LIRA, please cancel these orders before requesting the rollover if possible.
• If you currently have a PAD (pre-authorized deposit) or recurring bill payment set up for your RRSP, please cancel this before the rollover process.
• RRIFs, PRIFs, LIFs, and LRIFs all function in very similar ways. The only differences are how the payments are calculated, and whether or not there’s a maximum withdrawal amount.
• For locked-in retirement accounts (LIRA, LRSP), the account jurisdiction of the new LIF/LRIF must match the jurisdiction of the original retirement account (and pension plan from which it originated).
• For Questwealth accounts specifically, if the destination RRIF, or LIF account has the exact same asset allocation and risk tolerance (Conservative, Income, Balanced and etc..) your assets will not be sold except for rebalancing purposes. If the new RRIF or LIF account has a different portfolio selected, the assets will be sold and invested into the new portfolio.
• Spousal RRSP accounts must be rolled over into Spousal RRIF accounts.
• You do not pay any taxes or fees when you convert an RRSP to a RRIF (Or a LIRA to a LIF). Neither withholding taxes nor deregistration fees apply, the rollover process is completely free.
  • Commissions may apply if you choose to sell certain securities during the roll-over, In-kind roll-overs are free.
• Deregistration fees do not apply to future RRIF or LIF payments, even if you withdraw more than the minimum amount, these payments are always free.
  • However, deregistration fees are still applied when unlocking funds from a LIF.
  • Payments may have other tax implications, please speak with a tax professional or retirement planner for more information.
• Withdrawals/payments from a RRIF/LIF can be made in USD upon special request. Please contact us via live chat, or on the phone at 1.888.783.7866 to arrange this. You must submit a direct deposit form or void cheque for a USD-denominated bank account to request this.
• Please take care to add any Beneficiaries or Successors to your new RRIF or LIF account. For more detailed Estate planning information, please speak with a Retirement planner, and/or seek legal advice.
• Questrade cannot provide any advice about which payment option, frequency, or amount works best for your circumstances. Please speak with a tax or retirement planning professional for specific information related to your individual needs.

Once you have rolled over your account, and converted to a new retirement income account, you must begin your minimum payments the year after the account is created. (I.e. RRIF opened in 2025, first minimum withdrawal must be before Dec 31, 2026)

Before your payments commence (designated on your application form, or on the “Change RRIF/LIF Payment Schedule” form) you must make sure that you have cash available in your desired currency of withdrawal.

If you have a Questwealth account, you don’t need to take any action because the portfolio managers will automatically sell your assets ahead of your payment/withdrawal accordingly.

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.