What is a RRIF?

A registered retirement income fund (RRIF) is an investment account that pays you income during retirement. You can transfer tax-sheltered funds from registered Canadian accounts such as RRSPs, registered pension plans and other RRIFs into a RRIF.

How does a RRIF work?

You can open a RRIF at a financial institution, at any time. If you own RRSPs, you must convert your RRSPs to a RRIF or RRIFs before the end of the year you turn 71. When you do this, you’re directly transferring funds from your registered accounts to a RRIF. For example, you can transfer funds from these sources:  

• your RRSP* or from another RRIF you own, (Learn how to convert your RRSP to a RRIF)
• your unlocked funds from a pension plan,
• your spouse or common-law partner’s RRSP or RRIF upon death, separation or divorce,
• your employer’s deferred profit-sharing plan (DPSP), 
• your spouse or common-law partner’s employer’s DPSP upon death, separation or divorce

You can begin taking withdrawals from your RRIF in the year you open it, although there’s no obligation to do so. However, there’s a minimum amount you’ll need to withdraw starting the year after you open your RRIF, and continuing for every year after that. You’re free to withdraw more than the minimum amount from your RRIF. But you can’t apply the extra you take out this year towards next year’s minimum. If you take out more than the minimum in any year, you’ll still have to take out the minimum amount next year. You can own more than one RRIF, and these rules will apply to each of your RRIFs.