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Registered Retirement Income Fund
(redirected from RRIF)

   Also found in: Acronyms, Wikipedia 0.01 sec.
Registered Retirement Income Fund
In Canada, a tax-deferred retirement plan that invests the funds the holder has placed in a Registered Retirement Savings Plan (RRSP) and pays the beneficiary out of the income from those investments. Generally speaking, one does not buy an RRIF directly, but rather rolls over funds from an RRSP, which one may do anytime by the age of 71. The advantage to an RRIF is that it allows one to invest tax-free until one actually receives the income from those investments.


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The RRIF plan will allow to determine the level of income of the employee and manage his/her pension capital while allowing a certain level of flexibility when planning for tax and income purposes.
In most instances, it's also advantageous to defer converting an RRSP into a RRIF or an annuity until age 69; once this happens, a minimum amount must be withdrawn each year.
The difference is that current-year earnings of an RRSP or RRIF need to be reported on Form 1040, unless an affirmative election is made to defer tax until funds are distributed.
 
 
 
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