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A Registered Retirement Savings Plan (RRSP) can be converted to a RRIF at any time, but no later than the end of the year you turn 71. Once you open a RRIF, you are required to make minimum withdrawals, but no maximum.
You open a Registered Retirement Income Fund (RRIF) by transferring money from your RRSP. Transfers from other registered plans, such as defined contribution pension plans (DCPP) are allowed under certain circumstances. However, the rules relating to DCPP can be complicated, and are different depending on the province in which you reside. Typically you have two options for your DCPP at retirement:
1. Transfer to an individual locked-in income fund (LIF) – similar to a RRIF – most provinces require you to withdraw income each year between minimum and maximum amounts, or
2. Buy an annuity from an insurance company – a contract that guarantees to pay you an income for life.
To find out if you have options to combine your DCPP and RRSP into one RRIF by age 71, speak to a financial representative.