Fusion Credit Union - RRIF - Income For Your Retirement

How The Account Works

A RRIF is a registered account that provides you with income drawn from the savings in your RRSP during retirement. RRSP's can be converted to a RRIF at any age, but by December 31st of the year during which you turn 71, all funds from an RRSP must be transferred to a retirement income option.

Funds are transferred in from a Registered Savings Product
Investments continue to grow, tax free, until withdrawn.
You are in control of the amount and frequency of withdrawals, subject to the legislated minimum annual payment requirements.

More information regarding RRIF's can be found on the Government of Canada's website.

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FAQ's Regarding RRIF's

By December 31st of the year during which you turn 71, you must transfer the funds from your RRSP to another retirement savings vehicle, such as a RRIF. A RRIF allows you to maintain control of your funds and reduce tax being paid during retirement.

RRIF's are similar to RRSP's: they offer multiple investment options, allow for tax-deferred growth of qualified investments and are taxable as income when withdrawn.

However, unlike an RRSP, you cannot make new contributions to a RRIF as they are designed to provide income during your retirement. You can only transfer funds from a registered product or another RRIF into a new RRIF.

There is no minimum withdrawal amount during the first year of the account opening. In the following calendar year, you must start withdrawing from your account annually.

The amount is calculated at the beginning of every calendar and is based on your account's market value, your age or your spouse's or common-law partner's age (if that is how the account was originally set up).

Yes, but you must withdraw at least the minimum amount required from each of your accounts every year.

When funds are withdrawn from a RRIF, the amount will be taxed as income. In most instances, the funds will be withdrawn during your retirement, when you are in a lower tax bracket.

To set up your RRIF account and start the process of transferring money from your RRSP, contact your local branch, or speak to your wealth advisor today.

Variable Savings RRIF

This account is similar to a savings account.

Interest is calculated on the daily closing balance and compounded annually.
Your money can be transferred to other credit union investment instruments at any time.

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RRIF Term Deposits

A RRIF Term Deposit gets you a solid, predictable rate of return for as long as you are willing to lock it in. Best of all, the rate is guaranteed, so you know in advance what your investment will be worth at maturity.

Competitive rates and fully guaranteed
Term options from 1 to 5 years
Terms are non-redeemable

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Financial Wellness

Intro to Mutual Funds

Mutual funds are the most common type of investment fund. Read on to find out why many Canadians find them an easy and convenient way to add diversification to their portfolio.

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