What is a RIF?

RIF stands for Retirement Income Fund. A RIF is designed to provide retired Clients with a minimum retirement income amount every year, which is known as a RIF Payment Amount. Funds in a RIF are allowed to grow tax-sheltered (similar to RSPs) until taken out of the fund, at which point the funds withdrawn are taxed as income. Clients are able to withdraw funds on top of the minimum RIF Payment Amount, however these withdrawals are subject to government withholding taxes.