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How do I open an RRIF and transfer my RRSP?

About the RRIF

The Registered Retirement Income Fund (RRIF) is a registered retirement savings account with the Canadian government. It allows you to convert the savings accumulated in an RRSP into a source of income during your retirement. It also gives you control over the management of your investments, all while growing tax-free so long as they remain in the account.  

Learn more about the RRIF (external link) 

Open an RRIF using self-directed brokerage 

Moving from RRSP to RRIF 

An RRIF is usually opened when you decide to withdraw or convert your RRSP. This conversion must be done before the end of the year of your 71st birthday.  

In other words, while you can open an RRIF and transfer your RRSP assets at any age, it’s mandatory to do so by December 31 of the year you turn 71. Please note that this doesn’t need to be on the day of your 71st birthday. If you don’t transfer before the due date, the government can close your RRSP, thereby making the entire amount you’ve accumulated taxable as income.  

Here's how to transfer an RRSP to an RRIF without fees1 at NBDB: 

  1. You must already have an online brokerage account.  
  2. Write to us via the secure Message Centre to initiate a transfer of assets from your RRSP to an RRIF. You can also give instructions for systematic online payments.  

Note: Details about such payments are available in your online brokerage platform, by clicking Activities and Registered Accounts.  

1 We allow one RRIF withdrawal without fees, during the year the account is opened, provided the RRSP is transferred in its entirety. 

Mandatory minimum withdrawal 

  1. Once opened, the RRIF requires mandatory annual withdrawals.  
  2. The minimum amount for a withdrawal is calculated as a percentage of your age (or that of your spouse, if it’s more beneficial). Learn more on the Canada Revenue Agency (CRA) website (external link). 
  3. RRIF withdrawals are taxable as income.  
  4. Beyond the minimum amount, NBDB charges a fee of $50 plus taxes. To request a lump sum withdrawal, speak to a representative.  
  5. There is no maximum withdrawal amount for RRIFs and Life Income Funds (LIFs). 

Simplified working example: 

If you have $100,000 in your RRIF at 65 years of age, the minimum annual withdrawal for the year would be $4,000 (or 4%). This amount would be taxed as your annual income.  

No contribution limits  

There’s no upper limit to the amount you can contribute to an RRIF. However, unlike RRSPs, you can’t directly contribute to this fund; the deposits must come from an RRSP, another RRIF or other similar products.  

Flexibility in withdrawals  

You can withdraw more than the minimum amount but doing so could have financial implications.