A Registered Retirement Income Fund (RRIF or Spousal RRIF) is a tax-advantaged retirement account designed to provide you with income during retirement. It is the natural continuation of your RRSP when you turn 71.
Key features of a RRIF include:
- Mandatory conversion: You must convert your RRSP to a RRIF by December 31 of the year you turn 71
- Required withdrawals: You are required to make mandatory minimum annual withdrawals starting the year after you open the account
- Tax-free growth: While funds remain in the account, your investments continue to grow tax-free
- Taxable withdrawals: All withdrawals are taxable as income
- Contribution restrictions: You cannot make new contributions to a RRIF, except for eligible transfers from RRSPs, FHSAs, or other RRIFs