https://www.youtube.com/watch?v=r9Da-mb-zSw&t=1667s
RRIF
Earnings in a RRIF are tax-free and amounts paid out of a RRIF are taxable on receipt.
When you retire, your RRSP needs to be converted to a RRIF before the age of 71.
At 71, you will be forced to convert your RRSP to a RRIF.
At 72, you need to start withdrawing from it.
There is a minimum amount that you need to withdraw once converted to a RRIF.
It is very unlikely that you would ever just take out the minimum.
Benefits of a RRIF over RRSP
- no commissions on withdrawal
- income splitting if 65 or older
- no withholding tax on the minimum, there is a withholding tax above the minimum.
Withholding Rates
- 10% on amounts up to $5,000
- 20% on amounts over to $5,000
- 30% on amounts up to $15,000