Frequently Asked Questions
Here are answers to frequently asked questions concerning RIFs, how they work, and how they can best work for you. If you have any other questions, please call or visit your TD Canada Trust branch.
- Can I convert my RSPs to a RIF at any time?
- Can I transfer other RSPs or RIFs to my RIF at TD Canada Trust?
- Is there a minimum amount needed to set up a RIF at TD Canada Trust?
- What if I have a locked-in plan?
- Is there a maximum amount I can withdraw?
- How often can I receive income from my plan?
- When will my minimum withdrawals start?
- Can my minimum withdrawal be based on my spouse's age instead of mine?
- Will my minimum withdrawal amount always be the same?
- What if something unexpected happens? Can I access my money if I need it?
- How do I receive my RIF income?
- Can I have extra income tax withheld from my payments?
- What are the tax considerations of a spousal RIF?
- What happens to my RIF upon my death?
- How can I be sure that my income will continue to go to my spouse after I die?
- Can I convert my RSPs to a RIF at any time?
Yes. Your RSPs can be converted to retirement income at any time, but no later than the end of the year in which you turn 71.
- Can I transfer other RSPs or RIFs to my RIF at TD Canada Trust?
Absolutely. If you have RSPs or RIFs with other financial institutions, you can transfer them to your RIF at TD Canada Trust as long as the investments held within the RSPs/RIFs have matured or are eligible for transfer.
- Is there a minimum amount needed to set up a RIF at TD Canada Trust?
No. We have a variety of plans to fit any account size.
- What if I have a locked-in plan?
Your pension plan and Locked-in RSP or Locked-in Retirement Account (LIRA) can be converted for income to a Life Income Fund (LIF), Locked-in Retirement Income Fund (LRIF) or a Prescribed Retirement Income Fund (PRIF), depending upon the governing jurisdiction of the pension plan. These plans are similar in nature to RIFs and can provide you with the same tax deferral benefits.
- Is there a maximum amount I can withdraw?
There is no maximum amount you can withdraw from your RIF. For locked-in plans, payments are subject to the same minimum withdrawal limits as a RIF. However, there is also a maximum withdrawal amount based on predetermined formulas for each type of plan.
- How often can I receive income from my plan?
Most people choose their payment frequency based on their lifestyle and income needs. You can choose to withdraw income weekly, biweekly, monthly, quarterly, semi-annually or annually, depending on your plan.
- When will my minimum withdrawals start?
No minimum withdrawal is required in the calendar year a RIF is set up. In each subsequent year, only the annual minimum amount is required to be withdrawn. You choose when, during the calendar year, you want to receive income.
- Can my minimum withdrawal be based on my spouse's age instead of mine?
Yes. If your spouse is younger than you are, your minimum withdrawal would be lower than if it were based on your age. You do not have to hold a spousal RIF or name your spouse as beneficiary to take advantage of this option. However, the election to use your spouse's age must be made before your first RIF withdrawal, and once made, the decision cannot be changed.
- Will my minimum withdrawal amount always be the same?
No. Your minimum annual withdrawal amount changes each calendar year according to the value of your RIF on December 31st of the previous year, the prescribed minimum withdrawal schedule, and your age or your younger spouse's age.
- What if something unexpected happens? Can I access my money if I need it?
You can change your regular withdrawals any time you wish. You can increase your income, change the frequency of your withdrawals, or receive lump-sum payments. It's your choice. Again, the only stipulation is that you must receive at least your minimum income amount each year and not exceed your maximum for locked-in plans.
- How do I receive my RIF income?
Your income can be automatically deposited to your chequing or savings account, transferred to a non-registered investment account, or issued by cheque. We recommend that you consider the convenience of Direct Deposit to avoid postal delays and unnecessary trips to the branch.
- Can I have extra income tax withheld from my payments?
If you wish to have extra tax withheld and forwarded to the Canada Customs and Revenue Agency on your behalf, you can instruct TD Canada Trust to deduct the additional tax from your regular RIF withdrawals. This will potentially help you to avoid having to make a large lump-sum payment at tax time.
- What are the tax considerations of a spousal RIF?
There are tax considerations if any of your RSPs were spousal plans (that is, your spouse contributed to the plan), and contributions were made in the current or previous two years prior to converting to a RIF. The normal two-year attribution rule on the taxability of your withdrawals applies to your RIF as well, but only on amounts more than the minimum required amount.
For example, if your minimum RIF withdrawal amount is $1,000 and you withdraw income totaling $1,500, then $500 would be taxable in your spouse's hands if he or she made a spousal contribution of $500 or more to any spousal RSP in the year of the RIF withdrawal or in the two previous years.
- What happens to my RIF upon my death?
In the event of death, the balance of your RIF can be paid in a lump sum to your surviving spouse, estate, or other designated beneficiary. RIF funds may also be transferred to the registered plans of surviving spouses, dependent children, or dependent grandchildren. Or, you can designate regular RIF income to continue to be paid to your spouse.
- How can I be sure that my income will continue to go to my spouse after I die?
If you designate your spouse as the successor annuitant of your RIF, your spouse will assume ownership of your plan and your regular withdrawals will continue to be paid to him or her. Even if you do not make this designation, your spouse can become the annuitant if your estate is the designated beneficiary of the RIF and the executor(s) of your estate agree(s).
For help in setting your retirement goals and understanding your Retirement Income Options, feel free to visit any TD Canada Trust branch or call 1-800-560-6377 any time for more information.
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