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Overview
A Spousal Registered Retirement Income Fund (RRIF) allows you to use the savings earned in a Spousal RRSP to create a retirement income stream. Spousal RRSPs eventually convert into Spousal RRIFs, allowing you to withdraw the funds you've previously saved in your RRSP as income.
Eligibility
Only people who are retired should consider opening a Spousal RRIF. During the year the annuitant of the Spousal RRSP turns 71, they will be required to rollover the Spousal RRSP into a Spousal RRIF.
How to open a Spousal RRIF
To open the account, you'll need to have the following information for your spouse or the original contributor ready:
- Full name
- Date of birth
- Social Insurance Number (SIN)
The annuitant can follow the steps to open a Spousal RRIF on web:
- Log in to your Wealthsimple profile
- Select + Add an account from the Home page
- Select the Investing tab
- Choose Spousal RRIF from the options
- Choose what you'd like to invest in
- Select Next
- Follow the prompts to open the account
Rollover your Spousal RRSP to a Spousal RRIF
You can follow the instructions below if you have an existing Spousal RRSP with Wealthsimple that you're looking to rollover into a Spousal RRIF:
- Log in to the Wealthsimple app (ensure you have the latest mobile app version)
- Select your Spousal RRIF account that you want to rollover into
- Select the Convert existing Spousal RRSP option at the bottom of your screen
- Follow the prompts and select the Spousal RRSP you want to rollover
- Confirm the change and submit your request
Frequently asked questions
Can I contribute to a Spousal RRIF?
No, you can't make contributions to a RRIF. You can only fund it by transferring or rolling over an existing RRSP or RRIF.
Can I transfer my Spousal RRIF from another institution?
Spousal RRIF transfers are currently not supported.
Why does it matter whose age I use for minimum withdrawals?
You must withdraw a minimum amount from your Spousal RRIF each year, starting the year after the RRIF is opened. The minimum amount is calculated based on the Spousal RRIF owner's (annuitant's) age, but you can choose to use your younger spouse's age instead. The older the age used, the higher the minimum withdrawal amount will be, so using a younger spouse's age results in a lower minimum payment, allowing your investments more potential for growth. Once you select whose age to use, you can't change it.
Will I pay tax on withdrawals?
Yes, any withdrawals from a Spousal RRIF, including the minimum annual payment, are taxed as income in the year they are withdrawn.
- Minimum withdrawal amount: The minimum required annual withdrawal is not subject to withholding tax.
- Excess withdrawals: Any amount withdrawn in excess of the minimum is subject to withholding tax.
- Attribution Rule: If the annuitant (the owner of the Spousal RRIF) withdraws more than the minimum amount, and the spouse (the contributor) made contributions to any of the annuitant's Spousal RRSPs in the year of the withdrawal or the two preceding years, the excess withdrawal may be attributed and taxed back to the contributor. The minimum required withdrawal is exempt from this rule.
Can I hold USD cash in my self-directed Spousal RRIF?
No, currently, we don't offer USD accounts for a self-directed Spousal RRIF. This means all currency transactions in your self-directed Spousal RRIF will be in Canadian dollars (CAD).
- You can transfer USD assets directly into your self-directed Spousal 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 Spousal RRIF, you'll incur FX fees because the transaction requires converting CAD to USD, or USD to CAD
Who can access a spousal RRIF after conversion from a spousal RRSP?
Once a spousal RRSP converts to a spousal RRIF, the account belongs exclusively to the annuitant. Contributors can't access the spousal RRIF from their own profile. Only the annuitant can view the spousal RRIF on their own account. If you wish to share visibility, you can use the household feature to select which accounts you want to be visible to your partner.
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