You can establish a RRIF at a financial institution at any time. If you possess RRSPs, it is necessary to convert them to a RRIF before the end of the year in which you turn 71. This involves directly transferring funds from your registered accounts to a RRIF. For instance, you may transfer funds from various sources, including:

• Your RRSP or another RRIF you own
• Unlocked funds from a pension plan
• Your spouse or common-law partner’s RRSP or RRIF in the event of death, separation, or divorce
• Your employer’s deferred profit-sharing plan (DPSP)
• Your spouse or common-law partner’s employer’s DPSP in the case of death, separation, or divorce

If your RRSP is with Taaj Insurance, you will receive notification before turning age 71, where various retirement income options may be offered.

Withdrawals from your RRIF can commence in the year of its establishment, although it is not mandatory. However, there is a minimum withdrawal requirement starting from the year following the RRIF’s creation, and this continues annually. While you have the freedom to withdraw more than the minimum amount, any excess withdrawn in a given year cannot be applied towards the following year’s minimum. Should you withdraw more than the minimum in any year, you are still required to withdraw the minimum amount in the subsequent year. Multiple RRIF ownership is permissible, with these regulations applying to each RRIF.

Investments within a RRIF are not taxed, but withdrawals are subject to taxation.