Is there a difference between an RRSP and a RRIF?
Thanks for your question Paul. A Registered Retirement Savings Plan (RRSP) is usually used to save for retirement. A Registered Retirement Income Fund (RRIF) is used to withdraw money from as retirement income.
Some key points about RRSPs:
- contributions are tax deductible
- savings grow tax free
- you can convert your RRSP into a RRIF to get regular payments when you retire
Learn more about How RRSPs work.
Some key points about RRIFs:
- can be opened anytime, but no later than the end of the year you turn 71
- typically open a RRIF by transferring money from your RRSP
- you must take out a minimum amount from your RRIF each year once you turn 71
Learn more about RRIFs.