RRSP to RRIF

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I understand a RRSP is when you are saving, and RRIF is when you are taking out the savings, how do I convert it ? Do I sell all the stocks and then convert to RRIF? Or keep holding the stocks and convert to a RRIF, please explain.

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Asked on September 17, 2023 7:11 pm
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I just converted a portion of my RRSP to a RRIF with Questrade. I chose to call them and have this done. Everything is transferred in kind. Trading within your RIF is same as RSP. The only difference is you can no longer make contributions. There is no need to make a withdrawal in the year you open the RIF but after that there are minimum withdrawal amounts. When you open the RIF you can use the age of the younger person, either you or your spouse, to determine minimum withdrawals. My wife is 7 years younger so I was able to use her age to determine my withdrawals. To calculate the annual minimum withdrawal, the formula should be 1/(90-age) x RRIF market value, and the result would be rounded to 2 decimals. Also be aware that any withdrawals over the minimum amount are subject to withholding tax.
(Gary White at September 20, 2023 8:32 am)
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Your broker/lending institution will convert your RRSP to a RRIF in the year you turn 70.

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Posted by Bernie C. Parkinson
Answered on September 18, 2023 3:50 pm
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Hey there,
I'd reach out to your brokerage. Typically, there is a form you'll have to fill out and that will likely vary by broker. The key thing to remember is that you can transfer your accounts in-kind - so you shouldn't have to sell your stocks and then buy them back in the RRIF. Of note, RRIF is just an account type and you can hold multiple types of investments such as GICs, bonds, stocks, etfs, etc.

Bottom line, it should be fairly simple to transfer what you have in your RRSP to the RRIF but each broker likely has their own process to follow. With that in mind, I'd flip them a message asking them how to do that.
Mat

Mat

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Posted by Mathieu Litalien
Answered on September 18, 2023 5:02 am
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