How to prepare for your RRIF conversion

When plan members turn 71, they must convert their RRSP to a Registered Retirement Income Fund (RRIF) by the end of that year, at which time minimum payments must be made.

Our Customer Success team will reach out to you to book a consultation and begin the process. We will confirm:

• The date that your RRIF conversion will be effective
• Your marital status (if married or common-law) and your spouse’s date of birth - this information will assist us in determining the minimum withdrawal amount
• The RRIF amount you want to withdraw and your payment schedule – you may receive a lump sum payment or monthly payments, equal to at least the minimum amount as required by the Canada Revenue Agency

You will then complete a simple application form to be sent back to Common Good Plan c/o Common Wealth, along with any other required documentation.

It’s also helpful to know that:

• Because there is no age limit, you may continue to make TFSA contributions up to the contribution room you have available without any impact on your RRIF.
• Your RRSP contributions accumulated up to December 15 of the year you turn 71 will be used to determine the RRIF minimum payments. We are unable to accept RRSP contributions made after December 15 in the year you turn 71.
• Any amounts withdrawn in the calendar year that exceed the minimum RRIF payment will have income tax withheld at the following rates:
  • 10% (5% in Quebec) on amounts up to $5,000 
  • 20% (10% in Quebec) on amounts over $5,000 up to including $15,000 
  • 30% (15% in Quebec) on amounts over $15,000 
    
    Note that these rates apply to Canadian residents of all provinces and territories except Quebec. Please notify us if you change your residency.

• When setting up a RRIF, you may name a beneficiary. The RRIF can also become part of your estate and distributed according to your will.
• You will also be able to request ad-hoc withdrawals without paying any withdrawal fees. Withdrawal fees are only applied to a full account withdrawal.
• The minimum amount will be adjusted every year, based on your account value at the end of the previous year and the minimum amounts dictated by the CRA.

You can elect to convert to a RRIF earlier than age 71 to meet your retirement needs. Feel free to contact a specialist from Common Good Plan by clicking on the "Submit a request" button at the top of this page.