ATB Financial - Investor Services - RIFs

A Registered Retirement Income Fund (RRIF) is a highly flexible retirement income earning product that remains tax-sheltered until you withdraw the funds.

Why would I want to have a RRIF?

You have saved for many years in your RRSP to be able to enjoy your retirement. A RRIF is a very useful tool that will make use of your RRSP funds to provide you with income.
RRIFs are designed to allow you to maintain your desired lifestyle so you can relax and enjoy your retirement years, while allowing your invested funds to grow tax-sheltered until you withdraw them. Furthermore, an RRIF allows you to provide a long term benefit for loved ones (your spouse, or heirs) if you pass away before exhausting the funds. By naming your spouse as a successor annuitant, you can use an RRIF to provide a long term benefit after your death. You may also designate a beneficiary to receive a lump sum payment from your RRIF. Tax relief is available if your beneficiary is your spouse or a dependent.

How does an RRIF work?

By converting your existing RRSPs to an RRIF, you position yourself to receive income payments for the remainder of your life. RRIFs are a highly flexible option, that allows you to:

decide how often and how much you wish to take out of the plan (subject to the minimum required amount)

decide what investments to hold under your RRIF plan

decide when to collapse the plan

consider tax and estate planning

All payments from a RRIF are added to your taxable income for the year in which you take a payment. Taxes are withheld at the time of withdrawal on any amount withdrawn over the minimum required amount.

How do I know how much my Minimum Annual Payment will be?

The Federal Government has established a schedule of payments that must be withdrawn from the RRIF each year following the year that the RRIF is established. (To determine your personal payment schedule, please consult an ATB Investment Specialist.)

Note: You can reduce the annual minimum payment amount by basing it on the younger spouse’s age. However, once you have elected to base the payment on the younger person’s age, you CANNOT change this designation in the future.

What are my withdrawal options?

You can make withdrawals that are greater than the minimum amount at any time.

How do I know a RRIF is right for me?

It is recommended that all RRSP plan holders convert at least a portion of the funds in their RRSP to a RRIF when planning their retirement income. RRIFs allow your funds to grow, tax-sheltered, even while you are receiving your minimum annual payment.

If you agree with any of the following statements, an RRIF is a great investment tool for you!

I want to have input as to how my funds are invested.

I want to decide how much I withdraw each year, and this amount may change from year to year.

I want my funds to last for my entire retirement.

I want to defer the taxes on my RRSP by converting the funds to a RRIF.

I want to leave some of my savings for my estate.

I want to add to my retirement income.

Are there any other options?

Retirement income can come from a number of sources. Consider some of the following sources of income:

Canada Pension Plan

Employer pension plans

Old Age Security

Non-registered investment income

Part-time employment income

Conversion of your RRSP savings

When considering the conversion of your RRSP, four options are available:

Conversion of your RRSP into an RRIF

Withdrawal of your RRSP funds in cash

Conversion of your RRSP into an annuity

A combination of RRIFs, annuities and cash withdrawals

If your RRSP is in a Locked-In Retirement Account (LIRA) or you have locked-in pension funds from your employer, you can consider the use of:

Life Income Fund (LIF)

Locked-In Retirement Income Fund (LRIF)

Life Annuity

How can I invest in an ATB Financial RRIF?

There are three ways to acquire an ATB RRIF.

Convert your ATB Financial RRSPs to an ATB Financial RRIF.

Transfer your RRSP from another financial institution into your ATB RRIF. (Please note that all RRSPs must be converted prior to December 31st of the year in which you turn 71.)

Transfer funds from another RRIF into your ATB RRIF.

Please consult your ATB Investment Specialist today to determine the best option for you.

What happens to my RRIF in the event of my death?

If you have a spouse, the remaining funds in your RRIF can be transferred to your spouse, who will assume ownership of your RRIF. There are no tax consequences when you leave a RRIF to your spouse.
When you purchase an RRIF, you may designate your spouse as a beneficiary to receive the funds remaining, upon your death as a lump sum payment, or as regular payments over a specified time period.

How can ATB Financial help me to achieve my ideal retirement?

At ATB Financial, we can help you reach your retirement goals through:
1. Peace of mind that comes with ATB Financial’s 100% guarantee on ALL of your RRIF funds, principal and interest, with no maximum guaranteed amount.
2. Consolidation of your RRIF into one account, with one statement for simple management and no confusion.
3. The opportunity to transfer the investments held under your RRSP that have not yet matured into your ATB RRIF for the remainder of the term.
4. Option to automatically re-invest your funds upon maturity.
5. Knowledgeable staff eager to help you understand your options so you can enjoy your retirement.
6. No management fees on any of your investments.
7. Great products to meet your security, income and growth needs.