RRIF Rules and Withdrawals

If you own an RRSP, you can convert it to a RRIF to start drawing an income for retirement. You have until December 31 of the year you turn 71 to convert to a RRIF. If you need the income before age 71, you can convert sooner.

If you have a Locked-In Retirement Account (LIRA) or Locked-In RRSP, you can convert to a Life Income Fund (LIF), Locked-In Retirement Income Fund (LRIF) or Prescribed Retirement Income Fund (PRIF), depending on the province you live in.

The rules for LIFs, LRIFs and PRIFs may vary from the information on this page. For guidance on your situation, talk to an RBC advisor.

• You can open multiple RRIFs or convert all of your RRSPs into one RRIF.
• A RRIF cannot be held jointly—government rules permit only individual accounts.
• A RRIF cannot be opened under a business or trust name.

• You must start taking withdrawals the year following the year you opened your RRIF.
• You can choose your withdrawal amounts as long as you make the minimum annual withdrawal, which is a set percentage determined by the government. As you get older, this percentage increases. Calculate your minimum RRIF withdrawal now.
• You can set up your RBC RRIF with monthly, quarterly, semi-annually or annual withdrawals.
• RRIF funds count as taxable income in the year you withdraw them.

Contributions are not allowed in RRIFs. Only funds from an RRSP, another RRIF or certain types of pension plans, such as a registered pension plan (RPP), specified pension plan (SPP) or deferred profit sharing plan (DPSP), can be transferred into a RRIF.

Although you can’t make contributions, you can change the investments you hold in your RRIF. An RBC RRIF can hold a variety of investments, including Guaranteed Investment Certificates (GICs), mutual funds, portfolio solutions and savings deposits. You can also hold stocks and bonds through RBC Direct Investing™ and RBC Dominion Securities.

Since RRIF withdrawals are considered taxable income, they can impact your eligibility for certain government benefits, such as Old Age Security. To help avoid a reduction (called a clawback) of your benefits, it’s important to plan the timing and amount you need to withdraw.

You can transfer RRIFs between financial institutions at any time without being taxed (other than taxes owed on withdrawals); however, there may be a transfer out or other fees. You can also move some or all of your money between eligible investments within your RRIF.