Registered Retirement Income Fund (RRIF)
An RRSP is used for retirement savings, but it may be converted into a Registered Retirement Income Fund (RRIF) to allow scheduled withdrawals to establish a regular income from retirement savings. RRSP earnings are still available for investment by the planholder inside the tax-sheltered RRIF, but regular withdrawals can be made. All RRSPs must be converted to a RRIF by December 31 of an individual's 71st year.
Once an individual holding an RRSP reaches 71 years of age, the RRSP is converted from a savings only tool to a savings and income tool called a Registered Retirement Income Fund (RRIF). This allows individuals who hold an RRSP at Bayview to keep investing their money, but also allows for regular withdrawals to establish a regular income from their retirement savings.
PRODUCT FEATURES:
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Allows members a regular income, subject to a federally legislated annual minimum amount.
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Members are taxed only on the amount received annually.
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No administration fees and two free withdrawals per year.
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The balance of a member’s RRIF is tax-sheltered.
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Interest is calculated on minimum monthly balance, compounded and paid annually.
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Attractive investment terms from 1-5 years are available.
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Flexibility: members decide on the income amount to be received and the investment of remaining funds.
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In the event of the planholder’s death any balance in a RRIF goes to their spouse, beneficiary or estate.
Bayview Credit Union can help you with all your retirement needs and explain the Registered Retirement Income Fund in more detail. Contact us today!
