In this article:
Overview
A Registered Retirement Income Fund (RRIF) is a fund designed to earn money during your retirement. All RRSPs eventually convert into RRIFs, so a RRIF allows you to withdraw the funds that you've previously saved in your RRSP as income.
Eligibility
How to open a RRIF
Follow these steps to open a RRIF:
- Log in to the Wealthsimple mobile app
- From the Home page, scroll down and select Add or move account
- Select Open a new account
- Choose the RRIF account type
- Select how you want to use your account
- Tap Open account
- Follow the prompts to open a RRIF
- Log in to your Wealthsimple account
- Select Add an account from the Home page
- Select the Investing tab
- Choose RRIF from the options
- Choose what you'd like to invest in
- Select Next
- Follow the prompts to open the RRIF
What you can invest in with a RRIF
You can invest a RRIF in a variety of Wealthsimple products:
- Self-directed investing:
- Managed investing:
Rollover your RRSP to a RRIF
You can follow the instructions below if you have an existing RRSP with Wealthsimple that you're looking to rollover into a RRIF:
- Log in to the Wealthsimple app
- Select your RRIF account that you want to rollover into
- Select the Convert existing RRSP option at the bottom of your screen
- Follow the prompts and select the RRSP you want to rollover
- Confirm the change and submit your request
Deposits and withdrawals
Review the deposit and withdrawal information for RRIFs:
- Deposits: Unlike other investment accounts, you can't deposit funds directly into a RRIF. Instead, you can only fund a RRIF by transferring in an existing RRIF* or rolling over an existing RRSP.
- Withdrawals: You must withdraw a minimum amount every year starting in the calendar year after you open the account. Learn more about withdrawing from a RRIF.
Frequently asked questions
Does rolling over one RRSP mean I need to roll over all of my RRSPs into RRIFs?
No. Rolling over one RRSP does not mean you need to roll over all other RRSPs that you own. However, if you are 71 or older, the Canadian government requires you to roll over all RRSPs into RRIFs.
Why does it matter if I select my age or my spouse's age to determine the minimum withdrawal amount?
The older you are, the higher your minimum withdrawal amount is. If you have a spouse who is younger than you, and you decide to use their age to calculate your minimum withdrawal amount, your minimum required withdrawal will be lower than if you used your own age.
Can I set up a spousal RRIF with Wealthsimple?
Yes. The annuitant can open a spousal RRIF by following the steps here.
What happens if I open a RRIF and don't add funds to it?
Nothing. You're only required to make withdrawals on a percentage of the total value of your account. If your account balance is $0, you aren't required to withdraw from it.
Can I hold USD cash in my self-directed RRIF?
No, currently, we don't offer USD accounts for a self-directed RRIF. This means all currency transactions in your self-directed RRIF will be in Canadian dollars (CAD).
- You can transfer USD assets directly into your self-directed RRIF account
- Any USD cash transferred in, or any USD cash you receive from selling investments, will be automatically converted into CAD
- If you buy or sell USD assets within your self-directed RRIF, you'll incur FX fees because the transaction requires converting CAD to USD, or USD to CAD
How many RRIFs can I open?
- You can open as many individual Wealthsimple Portfolio RRIFs as you like.
- You can open up to 8 self-directed RRIFs.
Comments
0 comments
Please sign in to leave a comment.