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.
Before you begin
- You can only open an individually owned managed RRIF with Wealthsimple. Spousal RRIFs and DIY trading RRIFs are not currently supported.
- You can open as many managed RRIFs as you like.
- When you open a managed RRIF, you can choose a risk level. You can update your risk level at any time.
Open a RRIF with Wealthsimple
Once you’re ready to open an RRIF, follow these steps:
- Log in to the Wealthsimple mobile app
- Tap the arrow icon at the bottom of your screen
- Select Add an account
- Choose the RRIF account type
- Select whether or not you have a spouse or common-law partner and tap Next
- Choose who’s age you want to use when determining your minimum withdrawal amount (keep in mind that once you select this, it cannot be changed) and tap Next
- Enter your spouse or common-law partner’s information (if applicable) and tap Next
- Review your account agreements and Confirm your account opening
- Select how you wish to fund the account
Funding a RRIF with Wealthsimple
Unlike other investment accounts, you cannot add funds directly into a RRIF. Instead, you can only fund a RRIF by transferring in an existing RRIF, or rolling over an RRSP.
Once your account is open, you can fund your RRIF by either transferring an existing RRIF to Wealthsimple, or by rolling over an existing RRSP.
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 order, 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 that is younger than you and use their age to calculate your minimum withdrawal amount, you are forced to withdraw less money than if you used your own age.
Tip: Remember that once you select whose age to use, it cannot be changed.
What happens if I open a RRIF and don’t add funds to it?
Nothing. You are only required to make withdrawals on a percentage of the total value of your account. If your account balance is $0, you are not required to withdraw anything from it.
What are the fees in a managed RRIF with Wealthsimple?
Wealthsimple’s standard management fee is 0.5%. For accounts over $100,000, this fee drops down to 0.4%. To learn more about fees, click here.
Can I hold cash in a managed RRIF instead of investing my funds?
No, there is no option to hold cash in managed accounts. However, you can consider moving your portfolio to our high-interest savings ETF option for a no-risk investing alternative.