What is a RRIF?

A Registered Retirement Income Fund, or RRIF, is an investment option that allows you to transfer the funds from your Registered Retirement Savings Plan (RRSP) for the purpose of receiving a regular income during your retirement years. Contributions cannot be made directly to a RRIF; they must be transferred from a RRSP or other tax sheltered investment.

When can I purchase a RRIF?

You can purchase a RRIF at any time before the end of the calendar year in which you turn 69. There is no tax consequence for transferring your RRSP funds to the RRIF and you are not required to take any payment in the year of purchase.

In subsequent years, there is a mandatory minimum payment which changes annually based on your age (or your spouse's age if you have elected) and the total value of the RRIF at the beginning of the year. Payments received are taxable, however, since the income is spread over your retirement years, so is the tax liability.

Withdrawals in excess of the mandatory minimum payment are permitted, however, it should be noted that this will increase your taxable income and incur withholding tax at the same rates as with RRSPs. Withholding tax will also be incurred for any payments taken during the same calendar year that the RRIF is opened.

What are the options available?

GVC Credit Union has many RRIF options available such as:

  • variable rate plan with no minimum deposit and redeemable on demand
  • fixed rate, non-redeemable terms from 1-5 years with a minimum deposit of $500
  • GVC Escalator Term Deposits are RRIF eligible
  • no setup or administration fees*
*Except when the RRIF is transferred to another financial institution.

Visit or contact your branch today to find out how GVC Credit Union can help you with a retirement income plan that fits your needs.