5 Things to Know About RRIF Withdrawals
Written by The Content Team | Published on February 28, 2020
Written by The Content Team | Published on February 28, 2020
When it's time to shift from saving for retirement to funding your retirement with your savings, many questions crop up about Registered Retirement Income Funds (RRIFs).
Two of the most common?
First off, the government determines the minimum amount you must withdraw annually from your RRIF. On the second point, that's up to you...and depends in part on how you prefer to budget. You can choose monthly, quarterly, semi-annual or annual withdrawals. You can also request an unscheduled withdrawal.
Once you've got a handle on how much and when, here are five key things to know about RRIF withdrawals:
If you don't need any or part of your minimum annual payments right away, you may choose to keep your money invested outside of your RRIF. For instance, you can:
And of course, aside from your annual minimum withdrawals, the rest of your RRIF investments (your nest egg) can continue to grow on a tax-deferred basis. Remember, you can't make contributions to a RRIF, only withdrawals.
To learn more, check out How to View Your RRIF Information and Make Changes, part of the RRIF guide.
RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated. RBC Direct Investing Inc. is a wholly owned subsidiary of Royal Bank of Canada and is a Member of the Canadian Investment Regulatory Organization and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc. RBC Direct Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities. Investors are responsible for their own investment decisions. RBC Direct Investing is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence.
© Royal Bank of Canada 2024.
Any information, opinions or views provided in this document, including hyperlinks to the RBC Direct Investing Inc. website or the websites of its affiliates or third parties, are for your general information only, and are not intended to provide legal, investment, financial, accounting, tax or other professional advice. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Direct Investing Inc. or its affiliates. You should consult with your advisor before taking any action based upon the information contained in this document.
Furthermore, the products, services and securities referred to in this publication are only available in Canada and other jurisdictions where they may be legally offered for sale. Information available on the RBC Direct Investing website is intended for access by residents of Canada only, and should not be accessed from any jurisdiction outside Canada.
Testing your knowledge can help reinforce what you know, and may teach you a few things too.
Small caps are making headlines – here’s why they could offer unique investment opportunities
Some families may need to catch up on their post-secondary savings. Consider these questions as the years tick on.