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.
Deposits and withdrawals
- Deposits: Unlike other investment accounts, you can't deposit funds directly into an RRIF. Instead, you can only fund an 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 an RRIF.
Types of RRIFs on Wealthsimple
You can open managed and self-directed investing RRIFs on Wealthsimple:
- You can open as many managed RRIFs as you like.
- You can only open one self-directed RRIF.
How to open an RRIF
Follow these steps to open an RRIF:
- Log in to the Wealthsimple mobile app
- Under Accounts, scroll down and select + Add an account
- Select Open a new account
- Choose the RRIF account type
- Select how you want to use your account
- Review if this account is right for you, then tap Next
- 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.
Rollover your RRSP to an 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 your Wealthsimple mobile app
- Tap the Home tab at the bottom of your screen
- Select your RRIF account that you want to rollover into
- Select the Convert your RRSP account 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
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, you are forced to withdraw less money than if you used your own age.
Can I set up a spousal RRIF with Wealthsimple?
Right now, we can only create a spousal RRIF by rolling over an existing spousal RRSP when you turn 71. We can't open new spousal RRIFs that aren't connected to a spousal RRSP rollover.
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.
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%. Learn more about fees.
Can I hold cash in a managed RRIF instead of investing my funds?
No, there's 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.
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