Registered Retirement Income Fund (RRIF)

An RRIF is an account designed to provide income during your retirement years, which is created when you convert your RRSP. Similar to your RRSP your money can be used to purchase a variety of investments including, mutual funds, segregated funds, stocks, bonds, guaranteed investment certificates (GIC) and others. These investments within your RRIF are all tax-sheltered, meaning you do not pay any interest on the dividends, or capital gains. 

There are rules that indicate how much money you must withdrawal each year, at age 71 you must take out a minimum each year. The withdrawal amount is determined by your age. At age 71 you must withdrawal 5.38% from each RRIF account, by the time you turn 80 the minimum is 6.82%. You are able to withdrawal more than the minimum in any year, all withdrawals are considered income and you have to pay income tax on it. 

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