What You Need to Know
- In the 2017 Federal Budget, the Government of Canada announced its decision to phase out the Canada Savings Bonds Program. Refer to the Questions and Answers to find out what this means to you.
- The funds in your Canada RIF Plan are safe and guaranteed.
- Effective November 1, 2017, the options to transfer additional funds into your Plan (including transfers from an RRSP/RRIF or securities from a financial institution) and to exchange investments within your Plan are no longer available.
- The matured bonds in your Canada RIF Plan will continue to be reinvested into the next bond series and earn interest, but only until either November 1, or December 1, 2021, depending on the maturity date of the bond series you own.
- After the 2021 maturity date, the funds in your Plan will remain accessible to you and you will continue to receive your annual payments, however your Plan will not be earning interest.
- As always, you may transfer the funds from your Canada RIF Plan to another retirement income vehicle at any time.
- See The Canada RIF Terms and Conditions and Declaration of Trust for more information.
Transfers out of The Canada RIF
Bonds from The Canada RSP to The Canada RIF
If you have a Canada RSP Plan and would like to transfer your bonds from The Canada RSP to The Canada RIF prior to the age of 71, please contact Customer Service.
Bonds from The Canada RIF to another RRIF/RRSP at a Financial Institution
You may transfer your bonds “in-kind” from The Canada RIF to other registered plans at any time. You may also transfer the proceeds “in-cash” to another RRSP/RRIF. Please contact your financial institution or RSP Administrator.
Payments are made by electronic transfer to your bank account, or by cheque mailed to the address specified by you. Periodic payments are issued on the first business day of the month for the frequency you have chosen. If your mailing address has changed, please update it or sign up for direct deposit by completing the Change of Address and Direct Deposit form.
- The annual minimum amount withdrawn must meet the legislated minimum required by the Income Tax Act (Canada). The Canada RIF also has a minimum of $25 per payment. You can elect to receive more than the legislated annual minimum amount.
- Your December 31 statement, usually mailed no later than the third week of January, will tell you what your annual minimum payments will be.
- If your payments do not meet the annual minimum requirement an additional payment will automatically be made by December 31 to satisfy the legislative requirement.
Use Spouse’s Birthdate to Calculate Annual Minimum Payment
You may elect to use your spouse’s date of birth. If your spouse is younger, the legislated annual minimum payment will be lower; therefore, both the continued tax deferral of the proceeds within the RRIF and the amount of income it earns within the RRIF would be greater. Once the first payment is made, the date of birth you elected to use cannot be changed.
Payment Amount and Frequency
- You can opt to receive your payments every month, or every two, three, four, six or 12 months. Periodic payments are issued for the first business day of the month.
- You can change your payment amount or frequency at any time by giving a written notice to the Trustee as long as the minimum $25 per payment and legislated annual minimum amount are met.
Lump Sum Withdrawals
Withdrawals can be made at any time (subject to the terms and conditions of the individual bonds) by writing to the Trustee or by contacting Customer Service. Lump sum withdrawals are subject to a withholding tax.
Specifying Asset Depletion
For regular periodic payments, you cannot instruct which assets are to be used. Because of their different liquidity features, payments will be taken from the CSB first, followed by the CPB.
Within each bond category, payments are taken out of the bond with the lowest yield. If two or more bonds have equally low yields, then payments are taken out of the bond with the lowest interest rate. If two or more bonds have equally low yields and interest rates, then payments are taken out of the bond with the shortest term to maturity. Payments are taken from both principal and interest on a pro-rated basis. For lump sum withdrawals, you can request a specific bond from which to take the withdrawal (subject to the terms and conditions of the individual bonds). Payments made are taken from both principal and interest on a pro-rated basis.
Tax on Periodic Payments
Periodic payments are subject to federal and provincial income tax in the year received.
Issuance of Statements
Quarterly statements of account will be produced as of March 31, June 30, September 30 and December 31. The December 31 statement will outline the payment details for the following year.
Services for The Canada RIF Holders
Find out about address and legal name changes, and other services for The Canada RIF holders.