- Can I convert my RSP to a TD Mutual Funds RIF any time?
- Can I transfer another RSP or RIF to my TD Mutual Funds RIF?
- Is there a minimum amount needed to set up a RIF?
- What if I have a locked-in plan?
- How do most people choose to receive their income?
- Can my minimum withdrawal be based on my spouse's age instead of my own?
- Will my minimum withdrawal amount always be the same?
- When will my minimum withdrawals start?
- Can I change my withdrawals?
- How long does it take to change my withdrawal schedule?
- How do I receive my TD Mutual Funds RIF income?
- Can I have extra income tax deducted from my TD Mutual Funds RIF payments?
- How do I keep track of my investments?
- What about a spousal RIF?
- Are there estate planning considerations?
- How can I be sure that my withdrawals will continue to go to my spouse?
- Can I convert my RSP to a TD Mutual Funds RIF any time?
Yes. The only limitation is that you must convert your RSP, at the latest, by the applicable mandatory conversion age (December 31 of the year you turn 71). Otherwise, you may open a TD Mutual Funds RIF any time.
- Can I transfer another RSP or RIF to my TD Mutual Funds RIF?
Absolutely. If you have an RSP or RIF with another company, you can transfer the balance to your TD Mutual Funds RIF as long as all investments held within the RSP/RIF have matured or are eligible for a transfer. It's a good idea to consolidate your various plans into one RIF to benefit from the increased income flexibility, while simplifying your recordkeeping and estate planning.
- Is there a minimum amount needed to set up a RIF?
Although there is no minimum amount required to open a TD Mutual Funds RIF, minimums do apply to investing in individual mutual funds. Please refer to the prospectus before investing.
- What if I have a locked-in plan?
If you were a member of a company pension plan and your plan was wound up, or you ceased to be an employee because of termination, job change or retirement, you may have been able to transfer your pension assets to a Locked-In RSP (LRSP) or a Locked-In Retirement Account (LIRA). These are similar to RSPs and can be converted for income to a Life Income Fund (LIF) (except in Prince Edward Island, Saskatchewan, Yukon, Nunavut or Northwest Territories) or a Locked-In Retirement Income Fund (LRIF) (where governed by Newfoundland & Labrador legislation only). The type of plan and when you can open it depends on whether your pension plan was under provincial or federal jurisdiction. If you have funds invested in a locked-in plan, be sure to talk to a Mutual Funds Representative about the rules and options as they apply to you. We offer TD Mutual Funds LIFs and LRIFs.
- How do most people choose to receive their income?
It's a very individual decision. You can choose to receive income weekly, biweekly, semi-monthly, monthly, quarterly, semi-annually or annually. For example, if you plan to go south each winter, you may want to receive income semi-annually, in order to receive income before you leave and again when you return. Therefore, you may choose to receive your income in April and October. It's up to you.
- Can my minimum withdrawal be based on my spouse's age instead of my own?
Yes. For many people, it can make a big difference. As the annual minimum payment calculation is based on age, if your spouse is younger than you are, your minimum withdrawal would be lower than if payment withdrawals 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, once you receive your first retirement income payment, you cannot change the age you have selected. Please note that LIFs governed by New Brunswick legislation must be based on the annuitant's age only.
- Will my minimum withdrawal amount always be the same?
No. Your minimum annual income amount changes each year according to your age or your spouse's age, the value of your TD Mutual Funds RIF at the prior year end, and the prescribed minimum withdrawal schedule.
- When will my minimum withdrawals start?
Your annual minimum payments are based on the previous year-end value of your RIF and start by the end of the first full year the plan is open (i.e. for plans that open in 2002, payments start by the end of 2003). You choose when, during the year, you want to receive payments. Some people don't make their first withdrawal until the end of the year, in order to maximize the tax-deferred growth of their TD Mutual Funds RIF investments.
- Can I change my withdrawals?
Yes. In fact, this is a major advantage of a RIF over annuities. 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 withdrawals -- whatever suits your needs. Again, the only stipulation is that you must receive at least your annual minimum payment amount each year.
- How long does it take to change my withdrawal schedule?
You may choose to alter any withdrawals or your schedule as your needs change. If, for example, you chose to receive $300 each month-end and find that you really need $400, simply contact your branch and make your request five business days before the end of the month. You'll begin receiving your $400 that month-end. In all instances, we ask for notice at least five business days in advance of your next scheduled payment.
- How do I receive my TD Mutual Funds RIF income?
You can have your payment automatically deposited to your TD Canada Trust
Savings or Chequing Account or you can have your payments deposited to an account at another financial institution. If you prefer, we can also mail you a cheque, although we recommend that you consider Direct Deposit to avoid postal delays and unnecessary trips to the branch.
- Can I have extra income tax deducted from my TD Mutual Funds RIF payments?
If you wish extra tax to be deducted and forwarded to Canada Revenue Agency on your behalf, you can instruct TD Asset Management Inc. to deduct the additional tax from your regular RIF withdrawals and potentially avoid having to make a large lump-sum payment at tax time. You will have to complete Canada Revenue Agency form TD3 as your authorization.
- How do I keep track of my investments?
During the year, you will receive quarterly statements that will detail the value of your investments as well as any transactional activity that has occurred during the quarter. Your accounts can also be accessed at any time online through EasyWeb or by telephone through EasyLine. In addition, each January you will receive a statement detailing the value of your investments as of the prior year end and the required Annual Minimum Payment amount for the current year.
- What about a spousal RIF?
If your RSP was registered as a spousal plan (i.e. your spouse contributed to the plan), the normal two-year attribution rule on the taxability of withdrawals applies to your TD Mutual Funds RIF as well, but only on amounts above the annual minimum payment amount. For example, assume your minimum withdrawal amount is $1,000 and you receive payment totaling $1,500. Five hundred dollars would be taxable in your spouse's hands if he or she made a spousal deposit of $500 or more to any spousal RSP in the year of the RIF withdrawal or in the two previous years.
- Are there estate planning considerations?
Yes. In the event of your death, the balance in your TD Mutual Funds RIF can be paid in a lump sum to your surviving spouse, estate, or other designated beneficiary (Beneficiary designations can only be made through your Will in some jurisdictions). RIF Funds may also be transferred to the registered plans of surviving spouses, dependant children or dependant grandchildren. Or, you can designate regular TD Mutual Funds RIF income to continue to be paid to your spouse. Income taxes payable will vary according to the specific beneficiary. With the right estate plan in place, you can be confident that your estate will be distributed in a timely and tax-effective manner.
- How can I be sure that my withdrawals will continue to go to my spouse?
If you designate your spouse as the successor annuitant of your TD Mutual Funds RIF in your Will or directly on your RIF plan, your regular withdrawals will continue to be paid to him or her. Your spouse will assume ownership of your TD Mutual Funds RIF. Even if you do not make this designation in the RIF contract or your Will, your spouse can become the annuitant if your executor(s) agrees and you have not named another person as beneficiary.
If you could not find the answer to your question, we'd like to help.To discuss confidential matters regarding your personal finances, please contact us by phone at 1-866-222-3456, or visit a TD Canada Trust branch. E-mail is another option, however since it is not yet secure, please send us non-confidential notes only. Do not include confidential information, and do not use e-mail to send us transaction instructions. For your protection, our responses will not include any confidential information. You can contact us by e-mail at td.mutualfunds@td.com
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