RRIF's

RRIF's are purchased with an RRSP and are designed to operate as a payout mechanism. Registered Retirement Savings Plans can be RRIF'd at any age. Transfers from an RRSP to a RRIF or annuity are required in the year the annuitant turns 71.

Registered Retirement Income Funds established in 1993 or later have a minimum payout formula of 1/n x value of RRIF assets at the beginning of the year where n is the number of years remaining until the plan holder turns 90.

At age 94, 20% of the RRIF must be paid out each year. RRIF's are really self-administered wealth management vehicles. The recipient of RRIF income can continue to manage his or her investments as he or she chooses. The RRIF offers flexibility as to the timing and the amounts (within minimums) of withdrawals while the annuity contract is fixed and guaranteed.