For the majority of readers who are nowhere near the age of 71 I suggest you read this anyways. The main difference between the two is that the RRSP account is used to accumulate money via contributions whereas the RRIF account disperses money via withdrawals.
The government rules say that you have to withdraw the mandatory amount from your RRIF by Dec 31 of that year. How you get your payment is up to you.
You should check with your financial institution but here are some options that you will probably have available to you:. If you have more than one RRIF account, the mandatory amount has to be taken out of each account. No problem — just use the money in your RRSP to purchase an annuity before the end of the year you turn 71 and you will be good to go.
See it on Amazon now. Thank you very much for this informative article.
I have numerous separate no risk type RRSPs with different maturity dates ie year , , , which are all held within one in Financial Institution member account. I will be 71 years of age in year , thus will be required to transfer to RRIF and mandatory withdrawal completed in Thanks Freda.
Thank you very much for the clarification and additional information. You have provided information which has saved money, time ,the income taxation legislation and the ability to make the correct decision s applicable to this individual which affects financial situation for future years. I realize the RRIF mandatory withdrawl must be as first payment is December 31st in the year you turn Again, thank you very much Also, it is appreciated that other individuals post comments with suggestions, personal experience, etc.
These can be converted to RRIF,s when she turns Is this correct?
I understand that it is beneficial to have three non-contributing years before withdrawing money from an RRSP. I was born in I assume that means I need to transfer my RSP funds to a RIF by end of next year and make my first mandatory withdrawal by end of Is that right?
Less lifetime tax
She turned 65 back in Feb. When she divorced with my dad she was given ownership of the house. So years back she made a large RRSP withdrawal and paid off the rest of the existing mortgage. I guess she got tired of making the mortgage payments on her own.
The Globe and Mail
I am 68 this year and have 2 RRSP accounts. Would appreciate some info. I was born August 21,, my wife was born October 23, What is the correct way to set up my RIFF.
How much , if any, income tax will I have to pay if that is my only income for the year? Can I deduct it from my income and RIF withdrawals in the next year? My question is that if my current RRSP holds a combination of securities and cash — the securities are often changing in value daily — do I have to liquidate the securities or is there a Valuation Date 1st day of the year I turn 72 as the value of all of my investments for the purpose of calculating the mandatory annual withdrawal.
I obviously would like to keep the option of continuing to hold securities in my plan for future capital and dividend gains. My wife who turns 71 this year has a RRSP account which is largely comprised of securities. She wants to keep the securities and perhaps transfer them to a TFSA going forward.
Is there a tax advantaged way in which she can accomplish this? Do I have to cash them in before they mature? I want the flexibility of being able to contribute further in the future and am concerned I may have exhausted my TFSA room.
Account book value rrsp withdrawal rules
Can you just take a annualy amount and turn into a RRIF and received monthly payments? I will be 70 on December 17, I am still working full-time and intend to work for another three years.
I have three RRSP accounts. One at Great West Life through my employer; one at Tangerine and one at a brokerage. This is just so very confusing and I guess my bottom line question is when should I start talking to a FA at my bank and set up a RIF and start transferring my money over.
Also, I do understand that income that I save in the years that I am working beyond my 71st year is taxable income. Should I be putting that into a savings account?
Deferred Income in RRSPs
Thanks for any advice you can give me. It is very much appreciated. As such, I understand that I can not buy a new fund. I have received conflicting statements from TD Waterhouse. I am collecting CPP already.
What you need to know before converting an RRSP to a RRIF
If it goes into an annuity does the full amount become taxable at time of withdrawal. Where do I find the answers to some of the [above] questions on your website?
In particular, ? When does the RIF end zero balance. I was under the impession that all funds must be withdrawn by age 90 or thereabouts. Thank you. Can you clarify.
I am retired, 59 years old. Any help would be greatly appreciated. I have just noticed that I have a rrsp that matures in January of the year I turn 72 how do I prevent being taxed on the whole amount of the rrsp? Hi, i found your article very helpful and informative. Just one related question: can i have both rrif and rrsp accounts at the same time, meaning still contributing to my rrsp at one bank, while withdrawing minimum annually from my rrif at another bank?
I have a government registered RSP maturing May 15th this year. I am 56 years old. This is from a company I used to work for. I am now working for someone else with a different plan that works the same way. I did want this money to purchase a vehicle to see me into my senior years, but am now considering an annuity with a totally different financial institution….
RRSP Rules and Regulations
I posted a question months ago and have not recieved an answer. It appears there are lots of questions here but no answers?
I am 61 yrs old born , my husband is 70 born in We are both still working. I will retire in , that year my husband turn 72, when he must start withdrawing from his RIF. Is that correct? I am a widow, my husband passed away 5 years ago. Which means every year I will have to withdraw money from each of these two RIFs based on a specific percentage.
Thank you for your clarification in advance, I also find your answers to other questions very helpful. I will retire at age I have a few small RSPs that mature at different dates. I know that I would have to claim all the income from cashing out the RSP, but the amount would be small enough that my total income would still fall into the lowest tax bracket.
How to Reduce Taxes on RRSP Withdrawals
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How I Plan to Withdraw from my RRSP/TFSA to Fund Early Retirement
All rights reserved, unless otherwise noted. No content on this site may be reused in any fashion without written permission from Money Smarts Blog. Want to learn more about RESPs? John — You should check with your financial institution. Thank you in advance for your assistance. Mike M. Thanks, Doug. Thank you,. Subscribe to updates Receive free email updates:.