Registered Retirement Income Fund - RRIF

DEFINITION of 'Registered Retirement Income Fund - RRIF'

A retirement fund similar to an annuity contract that pays out income to a beneficiary or a number of beneficiaries. To fund their retirement, RRSP holders often roll over their RRSPs into an RRIF. RRIF payouts are considered a part of the beneficiary's normal income and are taxed as such by the Canadian Revenue Agency in the year that the beneficiary receives payouts. The organization or company that holds the RRIF is known as the carrier of the plan. Carriers can be insurance companies, banks or any kind of licensed financial intermediary. The Government of Canada is not the carrier for RRIFs; it merely registers them for tax purposes.

BREAKING DOWN 'Registered Retirement Income Fund - RRIF'

The RRIF plan is designed to provide people with a constant income flow through retirement from the savings in their RRSPs. RRSPs must be rolled over by the time the contributor reaches age 69, but by converting an RRSP into an RRIF, people can keep their investments under a form of tax shelter, while still having the chance to allocate assets according to contributor specifications.

RELATED TERMS
  1. Form 8891

    An IRS form that must be completed by any U.S. citizen or resident ...
  2. Matured RRSP

    A Canadian retirement savings vehicle that is registered with ...
  3. 90-Age Formula

    An equation used by Canadian retirees to calculate how much money ...
  4. Registered Retirement Savings Plan ...

    A legal trust registered with the Canada Revenue Agency and used ...
  5. Self-Directed RRSP

    A type of RRSP (Registered Retirement Savings Plan) whose owner ...
  6. Absolute Beneficiary

    A designation of a beneficiary that can not be changed without ...
Related Articles
  1. Taxes

    RRSPs: RRIFs

    Once you've retired, getting the money from your RRSP is easy. All you have to do is go to the financial institution that is holding your RRSP account and say that you have retired. Then it's ...
  2. Taxes

    RRSPs: Conclusion

    If you're a young investor, retirement may seem like it's a long way off, but we hope that this tutorial has encouraged you to think about planning ahead. After all, starting at a young age is ...
  3. Taxes

    RRSPs: Introduction

    This tutorial is your one-stop RRSP shop. Here we explore the ins and outs of RRSP planning and investing. Specifically, we look at what an RRSP is, what its advantages are, how you can set one ...
  4. Retirement

    The Complete Guide To Retirement Planning For 50-Somethings: Beneficiary and Estate Planning

    Beneficiary DesignationsIt is possible that you will not spend all of the funds that you save in your retirement nest egg. As such, you should make plans to ensure proper disposal of those assets, ...
  5. Taxes

    RRSPs: Withdrawals

    By now, you should have a pretty good idea of how to put your money into an RRSP and what happens to it while it's there. But an important questions remains: How the heck do you get money out? ...
  6. Savings

    529 Plans: Eligibility

    By Denise Appleby Who Can Establish and Contribute to the 529 Plan?Anyone can establish and contribute to a 529 plan on behalf of a designated beneficiary. This means that relatives, family, ...
  7. Insurance

    Who is a Beneficiary?

    A beneficiary is a person or entity that receives funds, assets, property or other benefits from a trust, will, or life insurance policy.
  8. Retirement

    Maxing Out Your RRSP (Canadian)

    Increasing your savings will provide tax benefits - and peace of mind.
  9. Taxes

    RRSPs: The Benefits

    What an RRSP Is A Registered Retirement Savings Plan, or RRSP, is a special type of investment account designed to help Canadians save for retirement. The main advantage of an RRSP account, as ...
  10. Retirement

    Mistakes In Designating A Retirement Beneficiary

    Make sure your beneficiary designations not only reflect your intentions but also meet the requirements to be effective.
RELATED FAQS
  1. How does a Registered Retirement Income Fund (RRIF) work?

    Learn about Registered Retirement Income Funds, which are the most popular retirement income options available to Canadian ... Read Answer >>
  2. How is a Registered Retirement Income Fund (RRIF) taxed?

    Discover how the Government of Canada treats Registered Retirement Income Funds and how you can use them to limit income ... Read Answer >>
  3. How and when can you convert a Registered Retirement Savings Plan (RRSP) into a Registered ...

    Discover how and when to convert your Registered Retirement Savings Plan into a Registered Retirement Income Fund, and learn ... Read Answer >>
  4. What are the main differences between a Registered Retirement Income Fund (RRIF) ...

    Learn about the advantages and differences of Registered Retirement Income Funds and life annuities. Explore two different ... Read Answer >>
  5. What are the main differences between a Registered Retirement Savings Plan (RRSP) ...

    Explore the key differences between a Canadian registered retirement savings plan and a registered retirement income fund ... Read Answer >>
  6. When do Registered Retirement Income Fund (RRIF) payments start and when do they ...

    Learn how and when to take distributions from your Registered Retirement Income Fund, including withdrawals above the required ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center