Even the best informed are often not so, when it comes to their retirement planning.

But that’s where we come in! No question about your Registered Retirement Income Fund (RRIF) is a sign of weakness!

We field lots of questions routinely. The most frequently asked ones are:

I am turning 71 this year, what happens to my RRSP?

Your RRSP must be closed, and a Registered Retirement Income Fund (RRIF) can be opened to keep retirement funds invested and tax-deferred (two other options are to cash in your RRSP and report its market value as income or buy a registered annuity from a life-insurance company).

Do I have to take a withdrawal in the first year?

No, you don’t need to begin taking withdrawals until you are 72.

How much am I going to have to take out each year?

You are required to take out a minimum amount based on the prescribed rates from CRA. Each calendar year, the prescribed rate increases (if your spouse is younger, your prescribed rate can be based on their age). You do have some options – you can elect to withhold taxes on your required annual payment which CIBC WG will remit to CRA on your behalf, and you can elect to take more than the required minimum, which will be taxed at predetermined rates.

What if I don’t need the additional income, do I have to sell securities to take my payment?

No, you can complete your annual withdrawal by transferring securities in-kind to your non-registered investment account.

When do I have to take my payment?

Majority of our clients withdraw annually, closer to the end of the calendar year, tax-sheltering assets for as long as possible. Some clients will elect to take their withdrawal monthly to supplement their lifestyle. What is most important is that the payment schedule is flexible and can be changed at any point during the year should your circumstances change.

What happens to my RRIF when I die?

The value of your RRIF will be included as taxable income in your final tax return, unless it is transferred/rolled-over to a spouse or common-law partner, or your financially dependent child or grandchild is the beneficiary.