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RRIF
Registered Retirement Income Fund
In Canada, you are required by law to convert any RRSPs into RRIFs in the year you turn 71, or your RRSPs will become taxable.
What is an RRIF?
A RRIF is a tax sheltered investment vehicle designed to provide a retirement income. This income comes from funds, which you have accumulated in a RRSP.
Your RRIF is exactly that, YOUR RRIF. You choose how often you wish to receive payments (monthly, quarterly, semi-annually or annually), the amount of time you wish to lock into a particular interest rate, and how much you would like to withdraw per year (there are minimum requirements for withdrawal).
How much does an RRIF cost?
There are no fees to begin a RRIF. Every dollar put into a RRIF comes back to you, with interest that is tax sheltered until withdrawal. However, if you are transferring your RRIF from another financial institution, they amy require you to pay a transfer fee.
Your RRSP can be transferred to a surviving spouse on a tax-deferred basis, if directed by a designation of beneficiary or by a will.
At Dauphin Plains Credit Union, we offer our members two RRIF plans:
Variable Rate:
Variable Rate RRIFs interest fluctuates with the market conditions, though you are free to withdraw at anytime, as this is an Open Term RRIF. As well, interest is calculated on your daily closing balance.
Fixed Rate:
Fixed Rate RRIFs remain at current interest rates for your term, which can range from 1 to 5 years. Interest is compounded annually.
All deposits with the Dauphin Plains Credit Union are fully guaranteed by the Credit Union Deposit Guarantee Corporation.
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