A Registered Retirement Investment Fund (RRIF) is similar to a Registered Retirement Savings Plan (RRSP), with the exception that you must take some taxable payments from the RRIF.
Northern Savings offers fixed-rate and variable-rate RRIF plans to provide maximum flexibility for your retirement income options. The choice of investment type is up to each member and members can mix and match their investments to best suit their needs.
The Canada Income Tax Act requires an individual who owns an RRSP to mature the plan by the end of the year in which the beneficiary turns 71.
The planholder then has the option of using the funds to:
- Purchase a life annuity
- Roll the funds into a RRIF
- Receive a lump-sum payment from the RRSP