When you retire, you will likely want to access the money you have saved in your Registered Retirement Savings Plan (RRSP). The most common way to do this is to convert your RRSP into a Registered Retirement Income Fund (RRIF).
There are a few things you should know before you convert your RRSP into a RRIF:
- You will have to pay taxes on the money you withdraw from your RRIF.
- You will need to make minimum withdrawals from your RRIF each year.
- You can choose to invest your RRIF money in a variety of different investments, including GICs, bonds, and mutual funds.
- You can name a beneficiary for your RRIF, just as you can for your RRSP.
- You can convert your RRSP into a RRIF at any time, but you must do so before you turn 71 years old.
Speak to a financial advisor to learn more about converting your RRSP into a RRIF and to find out if it is the right decision for you.
You may enjoy these other articles
At what age should I convert my RRSP into a RRIF?
You may have heard that you should convert your Registered Retirement Savings Plan (RRSP) into a Registered Retirement Income Fund (RRIF) when you retire. But what you may not know is that there is no set age for this conversion.
Is a TFSA or RRSP better?
There are a lot of variables to consider when thinking about whether a TFSA or an RRSP is better for you. It depends on your employment situation, your age, your tax bracket, and your investment goals.