Can you have a RRIF and an RRSP at the same time?
Michael Gray
Updated on March 08, 2026
Can I have a RRIF and an RRSP? Yes. Until the end of the year you turn 71, you can choose to have both an RRSP and a RRIF. Once you turn 71, however, you must convert your RRSP to a RRIF or other retirement income option.
Is it better to take RRIF payments monthly or yearly?
The main benefit of a RRIF is that it provides you with maximum flexibility in establishing an income stream during your retirement. Although you are generally required to take a minimum payment from your RRIF each year, there is no maximum and you can make withdrawals as often as you wish.
What is difference between RRSP and RRIF?
A Registered Retirement Investment Fund (RRIF) is an extension of an RRSP. The fundamental difference is that an RRSP is a tax-free savings plan used to invest for your retirement while an RRIF is a tax-sheltered account that allows you to withdraw income in retirement.
What is the minimum RRIF withdrawal for 2021?
2021 RRIF Minimum Withdrawal Rate Table
| Age (at start of year) | General (%) |
|---|---|
| 69 | 4.76% |
| 70 | 5.00% |
| 71 | 5.28% |
| 72 | 5.40% |
What happens if you don’t convert RRSP to RRIF?
However, once an RRSP is converted to a RRIF, you can no longer make contributions and you are required to make a minimum annual withdrawal, as set out by federal regulations. The funds you withdraw from your RRIF are taxable as this amount is added to your taxable income for the year.
Can you lose money in a RRIF?
There is no maximum withdrawal limit. If any money is left in your RRIF when you die, it will go to your named beneficiaries or to your estate.
How much tax do you pay on a RRIF withdrawal?
Once withdrawn, funds from a RRIF become taxable income. Any funds withdrawn in addition to your minimum is subject to a 10% to 30% withholding tax.
What do you need to know about RRIF and RRSP?
What is an RRIF? A Registered Retirement Savings Plan (RRSP) is a tax-free savings vehicle that drives a comfortable retirement in your golden years. Contributions made to your RRSP will not be taxed until the funds are withdrawn.
When do I need to make payments to my RRIF account?
If you convert your RRSP to a RRIF, payments will not be required until the calendar year following the year the RRIF account was opened. When converting an RRSP to a RRIF, the investments held in the RRSP can be transferred directly to the RRIF account.
What’s the percentage of fair market value for RRSP?
b) 10% of the RRSP/RRIF fair market value at the beginning of the year For example, if your annual minimum payments on your RRIF are $1,000 a month, and you take $2,000 a month in payments, they will still be considered “periodic payments” and only be subject to a 15% withholding.
How does a registered retirement savings plan ( RRSP ) work?
How RRSPs work. A Registered Retirement Savings Plan (RRSP) is an account, registered with the federal government, that you use to save for retirement. RRSPs have special tax advantages. TaxTax A fee the government charges on income, property, and sales.
