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Note: As stated by the Income Tax Act, every Registered Retirement Savings Plans RRSPs) must be closed out by December 31st of the year in which the plan holder (Annuitant) reaches the age of 71.
A Registered Retirement Income Fund (also known as RRIF) is an investment plan which has been established in accordance with the Government of Canada requirements. This allows you to transfer Registered Funds (Usually RRSPs) without any tax liability in order to attain an income stream for life. RRSPs cannot be kept after the age of 71. Individuals can withdraw funds from an RRIF at any time but any amount over the minimum is subjected to withholding taxes.
Visit our Offical Website: www.guaranteedinvestments.com
RRIF Rules in Canada
RRIF Rule # 1
Funds in an RRIF can only be sourced from another registered retirement income fund (RRIF), an RRSP (Registered Retirement Savings Plan) or another pension plan.
RRIF Rule # 2
Funds that make up an RRIF can be comprised of a single type of investment such as; Mutual Funds, GICs, Stocks and simple Annuities.
RRIF Rule # 3
The interest or dividends or capital gains in an RRIF is allowed to grow free of tax because the capital in an RRIF is almost entirely made up of transferred RRSP funds that have not been taxed. Withdrawals on the other hand from an RRIF are taxed as income.
RRIF Rule # 4
As an RRIF is structured and designed to provide a regular source of income, RRIFs that are not locked in can be withdrawn quickly and depleted quickly if that is the goal. Any withdrawn amount beyond the minimum withdrawal rule is once again subjected to withholding taxes.
RRIF Rule # 5
An RRIF can be started as early at the age of 55 and starting at the age of 65, the beneficiary is allowed to withdraw $2,000 tax free dollars each year until the age of 71 – If no pension income is being received.
For more information on RRIF Rules, Plans and Alternatives in Canada, Contact Guaranteedinvestments.com
RRIF Rules, Investment Options and Alternatives available at Guaranteedinvestments.com
Investments such as GICs, Mutual Funds, Stocks, Bonds, Guaranteed Investment Funds, Annuities and other types of investments are eligible in most cases for roll over to a Registered Retirement Income Fund (RRIF).
Most individuals who convert their funds to RRIFs are typically around the age of 70, therefore the types of investments most suitable in many cases are investments which provide security and peace of mind with some form of capital protection and income protection.
For investors looking for conservative investments for RRIFs visit Guaranteedinvestments.com
The financial advisors at Guaranteedinvestments.com hold credentials and titles which include “Certified Financial Planner”, “Chartered Financial Analyst”, “Masters of Business Administration (MBA)” and “Certified Investment Manager”.
Investment products offered by Guaranteed Investments include but are not limited to: Guaranteed Investment Funds, Segregated Funds, Annuities and Insured Annuities, Guaranteed Withdrawal Benefit Plans and Guaranteed Lifetime Withdrawal Benefit Plans.
“The information and content on this website should not be viewed as financial advice nor should it be viewed as a solicitation for investment purposes. The information should be viewed as general information and does not replace the advice and recommendations of licensed and accredited advisors including financial planners, lawyers, trust advisors, accountants and other industry professionals. Investment product information is available in prospectuses and information statements and should be reviewed carefully before investing. Not all investments are guaranteed in value and unit values on certain investments will fluctuate.”
TS Wealth Inc.
1033 Bay Street, Suite 221
Toronto, Ontario,
Canada, M5S 3A5
