RRIFs
A Registered Retirement Income Fund (RRIF) is a great way to manage your retirement savings after you retire. It’s like an RRSP in reverse – but instead of making contributions, you’re making withdrawals as you need them.
Earnings in your RRIF are tax-sheltered- Withdraw as much as you need from your RRIF each year
- Easily consolidate all RRSPs into one RRIF in retirement
Limited-time offer:
Get up to $3,500† when you transfer registered investments to a BMO RRIF
Why invest in an RRIF?
Tax-sheltered earnings
Your earnings are all tax-sheltered – so they can continue to grow, similar to how they would in an RRSP.
Flexibility
Withdraw as much as you need from your RRIF each year, above the yearly minimum
Simplicity
When you are ready to convert to a RRIF you can consolidate all of your RRSP accounts, even if they aren’t held with BMO.
RRIFs by the numbers
71:
The age at which you must convert your RRSP to a RRIF (or other income option)
5.28%:
Minimum annual withdrawal amount at the start of the year following your 71st birthday
0%:
Tax withheld on your minimum annual withdrawal amount
How to make the most of your RRIF
Here are a few ways to make sure you’re enjoying the most of what a RRIF has to offer.
Be strategic with your withdrawals
If you minimize withdrawals, you’ll pay less in taxes. Keep in mind minimum withdrawal requirements each year, though.
Know your minimum withdrawal amounts
Minimum withdrawal amounts change each year. The minimum at 60 is 3.33%. However, it increases each year until you turn 95 -- when the minimum increases to 20%.
Anticipate major withdrawals
If you expect requiring a large sum of money in the future, plan accordingly and regularly withdraw funds ahead of time. While there are no penalties for withdrawing over your limit, there will be tax implications.
Take advantage of our savings account rates
On top of everything else a RRIF/RRSP can do for you, here’s another great reason to start: Great rates and offers to help you make real financial progress right from the start. It’s easy to get started today.
Investments you can hold in your RRIF account
Guaranteed investment certificates protect your initial investment, so you’ll get that investment back at the end of the set term. Plus, you can count on a guaranteed rate of return, depending on the GIC you pick.
Pro tip: Market-linked GICs offer higher return potential than traditional Guaranteed Investment Certificates.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed and adviceDirect
Bonds are a fixed-income investment, meaning they provide a set interest payment on a regular schedule to investors allowing you to invest with a predictable return.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed and adviceDirect
We have a comprehensive selection of professionally managed mutual funds that can be a great fit in your account. Design the portfolio that works for your goals and how much risk you’re comfortable with.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed and adviceDirect
Exchange traded funds, like stocks, can be traded on financial exchanges. ETFs up of several assets, similar to a mutual fund– making them a diverse investment option.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed, adviceDirect and SmartFolio
Stocks – or equities as they’re also known - are shares of ownership in a company. These investments allow your money to grow as the company grows – either through stock price increases or shared earnings like dividends.
Ways to Invest:
- Online with BMO Self-Directed and adviceDirect
Enjoy a tax-efficient, guaranteed monthly cash flow to help you weather volatile markets and life’s uncertainties during your golden years.
Ways to Invest:
- With a BMO professional
- Online with BMO Self-Directed and adviceDirect
Tools and resources
Calculate what your RRIF payments might look like in retirement.
Everything you need to know about RRIF taxes.
Learn more about RRIFs and investing with BMO
SmartFolio: The smart solution for your RRIF
See how a RRIF account works with SmartFolio.
What is a RRIF?
You've worked hard to put money into your RRSP. Find out how to keep your retirement funds working for you with a RRIF.
Invest like a pro
Find out how to make your savings work harder though you by investing.
RRIF FAQs
A Registered Retirement Investment Fund (RRIF) is a great way to earn an income from your investments after you retire. It’s a bit like a Registered Retirement Savings Plan (RRSP) in reverse. Here’s how it works: you contribute funds to an RRSP before you retire, where they can grow, tax-sheltered. Then when you retire, you convert your RRSP to a RRIF. You can’t contribute to a RRIF, but you can draw an income from it while your investments can continue to grow, tax-sheltered.
The simple answer is that a RRIF let’s your investments grow tax-sheltered, even while you draw a retirement income from the account. You convert your RRSP into an RRIF when you retire, and you must convert before the end of the year you in which you turn 71. You can manage your RIFF investments just like you did with your RRSP. Pay yourself as much as you want from your RRIF, on any schedule — monthly, semi-annually, or annually — or even as occasional lump sums. You do have to withdraw a minimum amount every year. Withholding tax doesn’t apply to the minimum amount. Here’s a table of minimum amounts and withholding tax rates.
The minimum changes with your age. If you’re 65 on January 1 of this year, your minimum rate is 4% of your RRIF’s total value. If you’re 71, it’s 5.28%. If you have a younger spouse, you can use their age. Here’s a table of minimum amounts and withholding tax rates.
Yes, RRIF withdrawals are taxable income, and amounts above the annual minimum are subject to withholding tax. Check out the table of minimum amounts and withholding tax rates.
You can have the same mix of investments in a RRIF as you would in an RRSP — cash, GICs, Mutual Funds, publicly traded stocks, corporate and government bonds... whatever works for you.
Sure, you can have as many RRIFs as you like. But keep in mind you’ll have to apply the minimum withdrawal rule to all of them. Most people prefer to have one rather than several, because there’s no real advantage to having more than one.
Ways to contact us
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- This material is for informational purposes only. This material is not intended to be relied upon as research, investment, or tax advice and is not an implied or express recommendation, offer or solicitation to buy or sell any security or to adopt any particular investment or portfolio strategy. Any views and opinions expressed do not take into account the particular investment objectives, needs, restrictions and circumstances of a specific investor and, thus, should not be used as the basis of any specific investment recommendation. Investors should consult a financial advisor and/or tax information applicable to their specific situation.
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