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A registered retirement income fund (RRIF, French: fonds enregistré de revenu de retraite, FERR) is a tax-deferred retirement plan under Canadian tax law. Individuals use an RRIF to generate income from the savings accumulated under their registered retirement savings plan. As with an RRSP, an RRIF account is registered with the Canada Revenue ...
Rules determine the maximum contributions, the timing of contributions, the assets allowed, and the eventual conversion to a registered retirement income fund (RRIF), or an annuity, or the withdrawal of all funds within the RRSP, at age 71.
The minimum age for withdrawing funds from an RRSP without penalty is 71, at which point the account must be converted into a Registered Retirement Income Fund (RRIF) or used to purchase an annuity.When funds are withdrawn from an RRSP, they are added to the individual's taxable income for the year, and are subject to tax at the individual's ...
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Unlike other tax-deferred retirement accounts, such as a traditional 401(k), annuities have no maximum annual contribution, allowing savers to pile away as much cash as possible. That’s a ...
Contributions are tax-deferred. With an annuity, you won’t owe taxes on the money until you start getting payments. This means your contributions have a chance to grow tax-free, similar to a 401(k).
The distinction between a LIRA / LRSP and a registered retirement savings plan (RRSP) is that, where RRSPs can be cashed in at any time, a LIRA / LRSP cannot. Instead, the investment held in the LIRA / LRSP is "locked-in" and cannot be removed until either retirement or a specified age outlined in the applicable pension legislation (though certain exceptions exist).
A fixed annuity is an insurance contract that pays a specific interest rate based on account contributions. You can buy a fixed annuity with a lump sum payment or a series of payments over time.
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