A Registered retirement income fund provides a further deferring taxes to RRSP money. Typically RRIF provides continues deferring taxes when client reaches age 71. Client can transfer RRSP to RRIF any time earlier too. A taxpayer may invest more than 1 RRIF account. A taxpayer may withdraw more than schedule retirement payments. A taxpayer may open self-directed RRIF account.
Tip: A taxpayer must not get tax deductions when transferring from RRSP to RRIF.
Annual Minimum Payment Schedule.
| RRIF MINIMUM WITHDRAWAl TABLERequired minimum payments as a percentage of the market value of the assets as of December 31: | AGE (at the beginning of the calendar year) | NON-QUALIFYING RIFs | QUALIFYING RRIFs* | | < 71 | Formula is 1/(90 – age) | | 71 | 7.38% | 5.26% | | 72 | 7.48% | 5.56% | | 73 | 7.59% | 5.88% | | 74 | 7.71% | 6.25% | | 75 | 7.85% | 6.67% | | 76 | 7.99% | 7.14% | | 77 | 8.15% | 7.69% | | 78 | 8.33% | 8.33% | | 79 | 8.53% | 8.53% | | 80 | 8.75% | 8.75% | | 81 | 8.99% | 8.99% | | 82 | 9.27% | 9.27% | | 83 | 9.58% | 9.58% | | 84 | 9.93% | 9.93% | | 85 | 10.33% | 10.33% | | 86 | 10.79% | 10.79% | | 87 | 11.33% | 11.33% | | 88 | 11.96% | 11.96% | | 89 | 12.71% | 12.71% | | 90 | 13.62% | 13.62% | | 91 | 14.73% | 14.73% | | 92 | 16.12% | 16.12% | | 93 | 17.92% | 17.92% | | 94 or older | 20.00% | 20.00% |
*A qualifying RRIF is generally a Registered Retirement Income Fund entered into before 1993, having no funds or property in the plan in 1993 or later except funds or property from another “qualifying” RRIF. Call Sahib Insurance Experts for detail. |
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