A registered retirement income fund ( RRIF , French : fonds enregistré de revenu de retraite , FERR ) is a tax-deferred retirement plan under Canadian tax law . Individuals use an RRIF to generate income from the savings accumulated under their registered retirement savings plan . As with an RRSP, an RRIF account is registered with the Canada Revenue Agency .
7-514: RRIF may stand for: Registered Retirement Income Fund (Canada) Railroad Rehabilitation and Improvement Financing (U.S.A.) Resource Release Is Finalization, an alternate name for the Resource Acquisition Is Initialization (RAII) programming idiom Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with
14-454: A RRSP into a RRIF anytime on or before an individual reaches their 71st year. Before the end of the year in which an individual turns 71, it is mandatory to either withdraw all funds from a RRSP plan or convert the RRSP to a RRIF or life annuity. If funds are simply withdrawn from a RRSP, the entire amount is fully taxable as ordinary income; one defers this taxation by transferring investments in
21-679: A RRSP into a RRIF. The creation of the RRIF was announced on 10 April 1978 by Jean Chrétien as part of the April 1978 Canadian federal budget . The reform was implemented by an amendment to the Income Tax Act (creation of section 146.3) which was achieved when Bill C-52 received royal assent on 30 June 1978. As part of the federal response to the COVID-19 pandemic , RRIF minimum withdrawals amounts were reduced by 25% for 2020. The measure
28-426: Is an annual obligatory amount which is cashed out of a RRIF and sent to the account-holder without withholding tax . The withdrawal remains taxable Canadian income, but is eligible for a tax credit to reduce federal income tax by 15% of the first $ 2,000 withdrawn, if the holder is 65 years or older. In most provinces, a tax credit is also available to reduce provincial income tax. The minimum RRIF withdrawal each year
35-407: Is determined by a percentage that is calculated by the account holder's age and the total value of the plan on January 1 each year. The holder of a RRIF may elect to withdraw an amount greater than the minimum RRIF amount for that year, though withholding tax will apply to this supplementary amount. As an example, if a RRIF is valued at $ 500,000 when the account holder is 72 at the start of the year,
42-488: The title RRIF . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=RRIF&oldid=966550255 " Category : Disambiguation pages Hidden categories: Short description is different from Wikidata All article disambiguation pages All disambiguation pages Registered Retirement Income Fund The option exists to convert
49-533: Was implemented by the COVID-19 Emergency Response Act which received royal assent on 25 March 2020. Investments held inside a RRIF grow in a tax-deferred manner just as with a RRSP. There are two primary differences between a RRSP and a RRIF. The first is that no further contributions can be made once conversion to a RRIF has occurred. The other is a special functionality called a minimum RRIF withdrawal . A minimum RRIF withdrawal
#909090