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Abstract
A Registered Retirement Income Fund (RRIF) acts as an RRSP in reverse. A RRIF withdraws income from your retirement savings and allows the untouched portion to grow tax-free. Withdrawals from a RRIF account are taxed as income and there is no maximum yearly withdrawal amount.
You can convert your RRSP savings into a RRIF at any time; however once you do you can no longer contribute to your RRIF. Your RRSP expires in the month of December in the year you turn 71, so the majority of retirees convert their RRSP savings to a RRIF during this year. Once a RRIF account is opened, it will remain active until all the funds have been withdrawn or upon death where all remaining funds are transferred to the estate.
Self-Directed RRIF - To hold a portfolio that encompasses a wide range of investments, a self-directed RRIF can include individual stocks, bonds, mutual funds and more. This plan is similar to a self-directed RRSP and generally allows you to have the most flexibility and maximum investment.