Épargne Placements Québec

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Registered retirement income fund (RRIF)

Épargne Placements Québec’s registered retirement income fund (RRIF) is a great option to ensure your financial security during retirement. A RRIF is an extension of your registered retirement savings plan (RRSP) in which the capital you have carefully accumulated over the years continues to grow tax-free. Only the withdrawals you make will be taxed.

Our benefits

Épargne Placements Québec’s RRIF, a smart choice and a profitable investment:

  • Products highly suited to a RRIF portfolio;
  • Competitive interest rates;
  • No management or administration fees;
  • Fully guaranteed capital, regardless of the amount;
  • Great flexibility for your payments.
    • All products can be used for the mandatory annual RRIF payment.
    • Withdrawals greater than the minimum amount are possible if you hold products that can be cashed at any time, cashed on their anniversary date or with a 5-year term or less.
    • The products with the lowest interest rate are prioritized for withdrawals, leaving your other products with better returns grow.

How RRIFs work

The law requires you to convert your RRSP to a RRIF by December 31 of the year in which you turn 71. If you fail to do so, the federal government will close your RRSP and the accumulated amounts will be considered taxable income.

Then, each year, there will be a mandatory minimum withdrawal. You can set or change the terms of your RRIF at any time, including the amount and frequency of payments, the payment method and the product that is right for you.

The mandatory minimum withdrawal is calculated based on your RRIF balance as well as your age or your spouse’s age (criteria established at the beginning that cannot be changed). The table below shows the percentage that must be withdrawn from your RRIF each year, starting in the year following the one in which you open the RRIF.

Age % Age %
Before the age of 71 1 divided by (90 minus your age on January 1, 2020) 83 7.71
71 5.28 84 8.08
72 5.40 85 8.51
73 5.53 86 8.99
74 5.67 87 9.55
75 5.82 88 10.21
76 5.98 89 10.99
77 6.17 90 11.92
78 6.36 91 13.06
79 6.58 92 14.49
80 6.82 93 16.34
81 7.08 94 18.79
82 7.38 95 20.00

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.

If you want to open a RRIF at Épargne Placements Québec or would like to get more information on this account, simply contact one of our investment officers.