Post RRSP
What should you do at the end of the
plan?
Rule
December 31st of the year you
turn 69, you will cash your RRSP or convert your
RRSP into a retirement income.
At the Federal
level, this deadline is now 71.
If you convert your RRSP, you can
choose from a RRIF or an annuity.
The RRIF (Registered Retirement
Income)
This is what most resembles an
RRSP, but with regular withdrawals required.
You
have the same flexibility of choice of investment
types.
You will also need a plan withdrawals that
you want while respecting the
minimum required
by the government.
Annuities
You can convert a RRIF to an annuity,
but not vice versa.
An annuity is an annuity based on
your life expectancy. It is contracted from a life
insurer. The proposal may vary from one insurer to
another. Shop.
There are four types of annuities:
The conventional annuity
You receive a monthly pension
until you die. Some plans offer the cost of
living indexation.
Life annuity
You receive a pension until a predetermined
age, such as 90 years.
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The guaranteed annuity
If you die during the guarantee period, your
heirs will receive a portion of unused capital.
You must choose the duration of the warranty
period. Your choice will affect your pension. The
longer the duration of this warranty will be, the
less the pension will be.
The joint and survivor annuity
If a spouse dies, the annuity is paid to the
surviving spouse.
You can add coverage for the heirs as the
guaranteed annuity.
Transfer between spouses
It is not possible to transfer your retirement income
in the RRSP of your spouse.
Spousal RRSP
If your spouse has not attained the age of 69, you
can contribute to his /her RRSP. See
spouse's RRSP.
IRCs
They must be converted into a LIF: Life Income Fund
subject to maximum withdrawal. At 80, you must transfer
the amount remaining in annuities.
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