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
any time for more information.
|
