DOSSIER C / PERSONAL SAVINGS
5 FILES
RRSPs and RRIFs
Turning registered savings into income: withdrawals, RRIFs, spousal plans and annuities.
How an annuity compares with keeping savings in a RRIF
An annuity turns savings into a fixed income for life and cannot be undone. A RRIF keeps the money invested and flexible, and leaves the risk of outliving it with you.
What a spousal RRSP still does now that pensions can be split
Pension splitting made many spousal RRSPs look redundant. Before 65, and for withdrawals beyond what splitting allows, they still do work that nothing else can.
Why some retirees open a RRIF before they have to
The deadline is the end of the year you turn 71, but RRIF income from 65 qualifies for the pension income amount and for pension splitting. RRSP withdrawals do not.
What withholding tax takes from an RRSP withdrawal
The bank keeps 10, 20 or 30 per cent of a lump-sum RRSP withdrawal outside Quebec. That is a deposit against the tax bill, not the bill itself.
What a locked-in account turns into at retirement
A LIRA cannot simply be cashed. At retirement it becomes a life income fund with a floor and a ceiling on withdrawals, and a one-time unlocking option in some jurisdictions.
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