Registered retirement income fund (RRIF)
The Registered Retirement Income Fund (RRIF) from Épargne Placements Québec is a great option to ensure your financial security during retirement. It is an extension of your registered retirement savings plan (RRSP): the capital you have carefully accumulated over the years continues to grow tax-free in the RRIF. Only the withdrawals you make will be taxed.
Épargne Placements Québec’s RRIF, a smart choice and a profitable investment:
- All products can be used for the RRIF payment.
- Flexi-Plus Savings is prioritized for withdrawals, followed by the lowest interest rate products, allowing your other higher-yielding products to grow.
- Competitive interest rates.
- No management or administration fees.
- Fully guaranteed capital, regardless of the amount;
Every year, a minimum withdrawal from your RRIF is mandatory. A payment agreement for an amount equal to or greater than the mandatory minimum is established with Épargne Placements Québec. You can define the terms of this agreement yourself, that is, the amount and frequency of payments, as well as the payment method, according to your needs. The deadline to modify your agreement for the current year is April 1 of every year.
The payment methods offered are:
- Payment to the Investment Savings Account in Flexi-Plus Savings, a product that can be redeemed at any time at an advantageous rate.
- Transfer of products to the Investment Savings Account, available exclusively for the mandatory minimum amount with no tax withheld.
- Electronic funds transfer to your bank account.
The calculation of the mandatory minimum withdrawal is based on your RRIF balance as of December 31 of each year and your age or your spouse’s age (criteria established at the outset and cannot be changed). The table below shows the percentage that must be withdrawn from your RRIF balance each year based on your or your spouse’s age.
|Before the age of 71||1 divided by (90 minus your age on January 1, 2020)||83||7.71|
By withdrawing the mandatory annual minimum only, you maximize the return on your portfolio while benefiting from our advantageous rates. The best strategy is to evaluate the necessary withdrawals from your RRIF based on your financial needs and your other sources of income.
Withdrawing from the RRIF
If you wish to make a withdrawal from your RRIF during the year to meet your financial needs, you will need to sell your product, provided that the cash flow characteristics of the products you hold allow for this.
Do you already have a RRIF with Épargne Placements Québec?
To view or change the terms of your payment agreement, go to the Online transactions section of our Web site, and follow this path: Summary>Operations>Payment Agreements.
We invite you to read the document Terms and Conditions of Payment and Withdrawal Agreements to find out the terms and conditions of payment agreements.
Opening a RRIF at 71 years old
The law requires that your RRSP be converted to a RRIF by December 31 of the year you turn 71.
Do you have a RRSP with Épargne Placements Québec? You won’t have to do anything to convert your RRSP into a RRIF when you turn 71. Épargne Placements Québec will take care of opening a RRIF and transferring the amounts held in your RRSP. You will receive a communication from Épargne Placements Québec to notify you a few months before December 31 of the year you turn 71.
By default, the terms of payment of your RRIF annuity will be established as follows:
- Annual withdrawal: minimum amount.
- Frequency of payment: annually.
- Date of payment: the first business day of the month of December.
- Payment mode: Flexi-Plus Savings in the Investment Savings Account.
You have until April 1 of every year to change the terms and conditions of the agreement for the current year.
If you want to open a RRIF before you reach the age of 71, please contact an investment officer.