RRIF – Registered Retirement Income Fund – Ottawa, Ontario
RRIFs are established by financial institutions to provide retirement income for individuals. Money from RRSPs is transferred to the RRIF before the individual turns 71 years of age. No further contributions to the RRIF may be made once it has been converted from the RRSP. A designated portion of the money in an RRIF must be withdrawn annually, at which time the investor is required to pay tax on the portion that has been withdrawn.
In order to protect the principal amount throughout retirement, RRIFs are usually invested conservatively in a variety of funds, allowing for both principle preservation and income.