What You Need to Know
- The Canada RIF is only available to current plan holders.
- You cannot make direct contributions to your plan, but you can transfer existing RRSP or RRIF proceeds into it, and hold compound interest Canada Premium Bonds (CPB) in it.
Transfer and Exchange to The Canada RIF
Cash Held in RRSPs or RRIFs at Financial Institutions to Canada RIF
You can transfer cash from RRSPs or RRIFs only during the sales campaign period, from early October to 1 December. Cash received during this period will be used to purchase a compound interest CPB. Please contact Customer Service to initiate the transfer.
RRSP or RRIF from Other Financial Institution to The Canada RIF
You will need to contact Customer Service.
Securities from Other Financial Institutions to The Canada RIF
The product that you are holding inside your RRIF at another financial institution will need to be converted to cash in order to purchase compound interest CPBs. This is only permitted during the sales campaign, from early October to 1 December.
Bonds from The Canada RSP to The Canada RIF
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 must also redeem your bonds and transfer the proceeds “in-cash” to another RRSP/RRIF. Please contact your financial institution or RSP Administrator.
Exchange Investments within The Canada RIF
If you are currently holding a CSB or CPB within The Canada RIF, you can redeem an older series and buy a new CPB issue within The Canada RIF during any sales campaign, from early October to 1 December. To do this, contact the Trustee in writing.
Payments are made by electronic transfer to your bank account, or by cheque mailed to the address specified by you. Periodic payments are issued at the first business day of the month.
- The annual minimum amount withdrawn must meet the legislated minimum required by the Income Tax Act (Canada).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 31 December statement, usually mailed no later than the third week of January, will tell you what your annual minimum payments will be each year.
- If your payments do not meet the annual minimum requirement an additional payment will automatically be made by 31 December to satisfy the legislative requirement.
Use Spouse’s Birthdate to Calculate Annual Minimum
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. 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 31 March, 30 June, 30 September and 31 December. The 31 December statement will outline the payment details for the following year.
Services for The Canada RIF Owners
Find out about address and legal name changes, and other services for The Canada RIF owners.