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RRIF: Enjoy retirement your way

Turn a lifetime of savings into income

As a physician, you have the flexibility to retire when you want to. Even then, you may find ways to stay connected to your profession. So, you need a retirement income plan that’s just as flexible.

Regardless of when or how you plan to retire, a registered retirement income fund (RRIF) from MD will help you secure one source of reliable, tax-effective income to help you make more of your time after you’ve stopped working.

What is a RRIF?

RRIFs were created by the federal government to give Canadians an effective way of converting the savings in their registered retirement savings plan (RRSP) into a source of ongoing, taxable income. RRIFs are widely used in financial plans to help create greater overall income in retirement. Here’s why they are so popular:

You receive income every year, but the savings that remain in your RRIF can continue to grow and generate additional funds.

When you convert your RRSP to a RRIF, you can keep the same investments in your RRIF as you had in your RRSP — your investments don’t need to be liquidated. You can also adjust your investment mix as your situation changes.

With a RRIF, you pay tax only on the amount you withdraw every year. There is a minimum annual withdrawal requirement depending on your age, but you can choose to use your spouse’s age, if he or she is younger.

How RRIFs work

Your RRIF is the account that will generate your retirement income and provide you with regular payments. Here’s what you need to know about activating your account and how you will receive funds from your account:

Your RRIF replaces your RRSP
You can convert your RRSP to a RRIF at any time, but you must do it (or take cash or an annuity) by December 31 of the year you turn 71. This can be the ideal time to consolidate your RRIF accounts if you have more than one. Otherwise, you will need to withdraw the minimum required amount from each one.

You have options when taking money out of your RRIF
There’s no maximum amount you’re allowed to withdraw, but there is an annual minimum. It’s based on when you started the RRIF, your or your spouse’s age, and the amount you have in the RRIF. Having a good sense of your budget is beneficial before you decide to withdraw more than the annual minimum amount. An MD Advisor* can help you determine the amount that’s right for you, so that your financial needs are met while the amount of tax you pay is minimized.

RRIF withdrawal schedule

Make a RRIF part of your plan

It’s easy to convert your RRSP to a RRIF at MD when the time comes. We’ll help you plan now so you can have greater peace of mind about your retirement income later.