RRIF (Registered Retirement Income Fund)

Full Explanation

A Registered Retirement Income Fund (RRIF) is the account an RRSP must be converted to by December 31 of the year the holder turns 71. The government mandates minimum annual withdrawals from RRIFs starting at approximately 5.28% at age 71, increasing with age. These withdrawals are taxed as income. The funds inside a RRIF continue to grow tax-sheltered. You can convert your RRSP to a RRIF earlier, which triggers mandatory withdrawals. Careful planning around RRIF withdrawals is essential to minimize income tax in retirement.