Reg­is­tered Re­tire­ment In­come Fund (RRIF)

The Drumheller Mail - - REAL ESTATE -

You set up a reg­is­tered re­tire­ment in­come fund (RRIF) ac­count through a fi­nan­cial in­sti­tu­tion such as a bank, credit union, trust or in­sur­ance com­pany. Your fi­nan­cial in­sti­tu­tion will ad­vise you on the types of RRIFs and the in­vest­ments they can con­tain.

If you are con­sid­er­ing this type of RRIF, be sure to con­sult your fi­nan­cial in­sti­tu­tion.

Once the RRIF is es­tab­lished, there can be no more con­tri­bu­tions made to the plan nor can the plan be ter­mi­nated ex­cept through

death. A reg­is­tered re­tire­ment in­come fund (RRIF) is an ar­range­ment be­tween you and a car­rier (an in­sur­ance com­pany, a trust com­pany or a bank) that we reg­is­ter. You trans­fer prop­erty to the car­rier from an RRSP, a PRPP, an RPP, an SPP, or from an­other RRIF, and the car­rier makes pay­ments to you.

Trans­fer­ring to your RRIF Usu­ally, you can only con­trib­ute to a RRIF by di­rectly trans­fer­ring cer­tain amounts you re­ceive or are con­sid­ered to have re­ceived.

You can have more than one RRIF and you can have self-di­rected RRIFs. You may want to set up a self-di­rected RRIF if you pre­fer to build and man­age your own in­vest­ment port­fo­lio by buy­ing and sell­ing a va­ri­ety of dif­fer­ent types of in­vest­ments. The rules that ap­ply to self-di­rected RRIFs are gen­er­ally the same as those for RRSPs. For more in­for­ma­tion about el­i­gi­ble in­vest­ments, go to Self-di­rected RRSPs.

You can have more than one RRIF and you can have self-di­rected RRIFs. The rules that ap­ply to self- di­rected RRIFs are gen­er­ally the same as those for self­di­rected RRSPs. For more in­for­ma­tion, see Self-di­rected RRSPs. You can­not trans­fer any part of your re­tire­ment al­lowance to a RRIF.

The min­i­mum amount must be paid to you in the year fol­low­ing the year the RRIF is en­tered into. Earn­ings in a RRIF are tax-free and amounts paid out of a RRIF are tax­able on re­ceipt.

You can have more than one RRIF and you can have self-di­rected RRIFs. The rules that ap­ply to self- di­rected RRIFs are gen­er­ally the same as those for RRSPs. For more in­for­ma­tion, see Self-di­rected RRSPs. You can con­trib­ute to your RRIF by hav­ing prop­erty trans­ferred di­rectly from:

• your PRPP or un­ma­tured RRSP;

Set­ting up a RRIF

• your ma­tured RRSP, in­clud­ing a di­rect trans­fer of a com­mu­ta­tion pay­ment from your RRSP an­nu­ity; or

• an un­ma­tured RRSP un­der which your cur­rent or for­mer spouse, or com­mon­law part­ner is the an­nu­i­tant. For more in­for­ma­tion con­cern­ing this type of trans­fer, see Prop­erty from an un­ma­tured RRSP. RSP DEAD­LINE

IS FE­BRU­ARY 29, 2016

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