RRIF / LRIF

A Registered Retirement Income Fund (RRIF) can help you maintain the lifestyle to which you've become accustomed. By the end of the calendar year in which you turn 69 you must convert your registered savings, RRSPs for example, to an income-producing vehicle or take the entire amount in cash. Because the latter choice can result in a significant tax bill, many people choose to convert to a retirement income plan such as a RRIF.

A RRIF encompasses the accumulated savings of your RRSP(s) and provides you with income which is spread over your retirement years. You are required by law to take a minimum amount of income each year from your RRIF, but the money which remains in the RRIF stays invested and can grow tax-free until it is withdrawn.

An LRIF is a special kind of Registered Retirement Income Fund (RRIF) that converts retirement savings into regular income payments. With this fund you have the additional flexibility of being able to adjust how much income is received and how often it's received as well as adjusting the investment choices made. A legislated annual maximum is set for withdrawals on this fund so that you are assured of having an annual income for life.