Registered Retirement Income Funds (RRIFs) play a crucial role in providing retirees with a reliable source of income post-retirement. RRIFs are designed to provide retirees with financial flexibility and security, offering tax-efficient income streams throughout their retirement years, offering several key advantages and considerations:

• RRIFs are funded typically by rolling over your investments as they are currently invested (in-kind) from an RRSP, as RRSPs cannot be maintained beyond the end of the calendar year you turn 71
• Funds within a RRIF can only originate from another RRIF, an RRSP, or another pension plan, ensuring they are designated for retirement income
• While capital and earnings within a RRIF grow tax-free, withdrawals are subject to taxation at the time of withdrawal
• Unlike Locked-In Plans, RRIFs have no maximum withdrawal limit, but there is a mandatory minimum withdrawal amount based on the account holder’s age (see chart below)
• Withdrawals beyond the minimum amount are subject to varying degrees of withholding tax, providing flexibility with tax implications