If you've made regular contributions to an RRSP over a period of years, you've accumulated substantial savings. By transferring these savings to a RRIF, or Registered Retirement Income Fund, you can assure yourself control and flexibility in managing your retirement income.

RRIFs provide income for your retirement

A RRIF is a tax-sheltered retirement income option for RRSP funds. It provides an income that can last for your lifetime or your spouse's. Since this income is spread over your retirement years, so are the taxes.

At Heritage Credit Union we offer a wide variety of RRIF term deposits and variable options with very competitive interest rates. You cannot contribute directly to a RRIF. Funds must be transferred from a RRSP or other tax-sheltered investment. You don't pay taxes when funds are transferred from your RRSP funds to your RRIF; however, you do have to pay taxes on any money removed from the RRIF.

You can purchase a RRIF any time before your 69th birthday and you don't have to take any income in the year of purchase. Each year after that, there's a minimum payment that must be withdrawn based on your age and the total value of your RRIF at the beginning of the year.