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.

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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. 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 >>
  4. How are Registered Retirement Saving Plans (RRSPs) taxed?

    Learn about registered retirement saving plans, and find out how the Government of Canada provides tax benefits for those ... Read Answer >>
  5. Is a Registered Retirement Savings Plan (RRSP) taxable in the U.S.?

    Learn how the IRS treats Canadian Registered Retirement Savings Plans that are held by U.S. citizens or residents, and discover ... Read Answer >>
  6. When can you withdraw your savings from a Registered Retirement Savings Plan (RRSP)?

    Learn the standard age for withdrawing savings from a Registered Retirement Savings Plan (RSSP) and what you can expect if ... Read Answer >>
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