You’ve worked hard to save for retirement and now it’s time to turn those savings into income. A Registered Retirement Income Fund (RRIF) helps you convert your Registered Account Savings Plan (RRSP) or other registered savings into a steady stream of retirement income, while your investments continue to grow tax-deferred until withdrawn.

Key Benefits

• Tax-deferred growth: Investments inside your RRIF keep growing tax-deferred until you withdraw.
• Flexible withdrawals: You can choose monthly, quarterly, semi-annual, or annual payments, and request extra withdrawals anytime.
• No maximum withdrawal: Withdraw as much as you need (amounts above the minimum are subject to withholding tax).
• Estate planning flexibility: You may name a spouse as successor annuitant for tax-deferred transfer upon death.

Who Can Open and Use an RRIF?

• Eligibility: Any Canadian with an RRSP or other registered pension plan.
• Mandatory conversion: You must convert your RRSP to an RRIF or annuity by December 31 of the year you turn 71.
  • Note: Not converting may result in your RRSP being de-registered and taxed as income.

Withdrawal Rules

• Start date: Withdrawals begin the year after you open your RRIF.
• Minimum annual withdrawal: The government requires you to withdraw a minimum amount each year, calculated by applying a prescribed percentage—based on your age (or a younger spouse’s)—to the value of your RRIF.
• No maximum: You may withdraw more if needed. However, excess amounts are subject to withholding tax.
• Tax treatment: All withdrawals are taxable as income in the year received.

What Can You Hold in a RRIF?

A RRIF can hold the same investments as an RRSP, including cash, GICs, mutual funds, ETFs, stocks, bonds, and segregated funds—giving you flexibility to maintain your existing investment strategy while drawing income.

RRSP vs RRIF — High-Level Comparison

Additional Considerations

• RRSP withdrawals do not qualify for the pension income tax credit or income splitting. RRIF withdrawals do, starting at age 65.
• RRSPs must be converted to an RRIF or annuity by age 71. RRIF minimum withdrawals start the following year.
• Converting earlier than age 71 can offer tax benefits such as income splitting after age 65 or claiming the pension income tax credit.
• RRIF withdrawals are taxable; amounts above the annual minimum are subject to withholding tax.
• Non-residents face a default 25% withholding on RRSP and RRIF withdrawals, but RRIF periodic payments may qualify for lower treaty rates (often 15%).
• Upon death, RRIF value is taxed on the final return; spouses or qualified beneficiaries can transfer to their RRSP, RRIF, or buy an annuity.
• You can plan withdrawals to minimize tax and avoid OAS clawbacks.

Curious what your RRIF payments could look like?

Try our RRIF Payment Calculator to estimate your minimum annual withdrawals and personalize your payout schedule.

Securities-related products and services are offered through Raymond James Ltd. (RJL), regulated by the Canadian Investment Regulatory Organization (CIRO) and a Member of the Canadian Investor Protection Fund. RJL financial/investment advisors are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund. Solus Trust Company (“STC”) is an affiliate of Raymond James Ltd. and offers trust services across Canada. STC is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund.