You’ve worked hard, planned carefully, and built your retirement savings. You’re ready to retire but need some help taking that next step. We encourage you to speak with IGS Insurance about using a Registered Retirement Income Fund (RRIF) to minimize your taxes and make the most of your retirement income.
Buying Registered Retirement Income Fund (RRIF)
Are you coming up to the age 71. Have you thought about what you will be doing with your RRSP? Why not convert the plan to an RRIF giving you the ability to defer your taxation? At the age of 71 it will be mandatory to withdraw all funds from your RRSP. If you intend to withdraw all of your RRSP contributions, the money withdrawn would then become taxable as income. Thus, making the RRIF more feasible to defer these taxes and enjoy retirement.
Registered Retirement Income Funds should be considered between the ages of 65 and 71. Thus, giving you the ability to reduce your tax bracket and keep more for your retirement.
A minimum RRIF withdrawal is cashed out and provided to the account holder without with holding tax. This would mean that upon tax filing depending on the amount withdrawn you would then have to pay tax based on your current tax bracket.