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An RRIF is a retirement income fund registered with the government. It provides you with income during your retirement while sheltering the balance from the tax man. An RRSP must be converted to an RRIF by December 31 of the year in which you turn 71 to convert your RRSP funds to an income-generating plan. You can’t put money directly into an RRIF. Instead, you can transfer funds in from your savings in an RRSP, another RRIF, a Registered Pension Plan, or a commuted RRSP Annuity.
An RRIF is used to withdraw income during your retirement unlike an RRSP which is used to save for your retirement.
An RRSP is required to be converted to a retirement income option such as an RRIF by December 31 of the year in which you turn 71. However, you do have the option to convert your RRSP to an RRIF at any time before then. Automated monthly, quarterly or annual income payments directly into your Coast Capital Savings chequing account can be set up
Similar to RRSPs investments are tax–deferred and tax is paid only on the amounts withdrawn from the RRIF. And like an RRSP, there are several investment options such as mutual funds, segregated funds, term deposits and saving accounts. Our Investment Team can help form the right RRIF portfolio that will help you meet your financial goals.
Canada Revenue Agency (CRA) requires that you take minimum payment amounts out of your RRIF each year. That amount is determined at the beginning of each year by a calculation that uses your age and the market value of the assets in your account as of December 31 of the previous year.
Subject to the government's annual minimum withdrawal requirements, you may withdraw as much as you want from your RRIF
RRIF payments are considered taxable income in the year they are withdrawn and will be added to your income for tax purposes. RRIFs are extremely flexible - you may make withdrawals as often as you like and you may withdraw over your minimum annual amount.
In the event of your death, your RRIF can be transferred directly to your spouse or common law partner tax free as long as he or she is named beneficiary on your RRIF account
For information on changes to deposit insurance and the transition period if we become a federal credit union, see the notice pursuant to the Disclosure on Continuance Regulations (Federal Credit Unions).