RRIF Registered Retirement Income Fund

Learn about RRIFs (Registered Retirement Income funds) and how they differ from other retirement accounts.

RRSP accounts reach their maturity (and must be terminated) in the year in which you turn 71, but what if you want to keep growing your portfolio? If that’s case, you’ll want to learn about Registered Retirement Income Fund accounts (RRIFs).

A RRIF is like an extension of your Registered Retirement Savings Plan (RRSP), but instead of putting money in, you get to withdraw from the fund and enjoy your hard-earned money throughout your retirement while continuing to manage your portfolio.

With RRIF accounts, you’re required to withdraw a minimum percentage of money from your account annually according to government regulations. The older you get, the higher the percentage you’re required to withdraw.

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Investing with RRIF accounts

You can diversify and build a portfolio by investing in one or more of the RSP-eligible products below:

• Stocks (both Canadian and foreign stocks)

• ETFs

• Mutual funds

• Bonds (including government, corporate, strip, and savings bonds)

• Gold and silver bars

• GICs

• Treasury bills (T-bills)

• Cash

• And more

Important to know

Here are some things you should know about RRIF accounts:

• The minimum required RRIF withdrawal amount increases as you age

• All withdrawals are fully taxable; however, no tax is withheld when the minimum annual amount is withdrawn

• You cannot make contributions to your RRIF account, but your investments could continue to grow by actively managing your portfolio

• There is no maximum withdrawal for RRIFs, unless they are locked-in, such as an LRIF or LIF

• RRIF withdrawals can also be made in kind as withdrawals of investments

• You don’t have to wait until age 71 to open a RRIF

• Different rules (opens in a new tab) apply for RRIFs that were set up before the end of 1992