A RRIF is a tax deferred retirement plan. It falls under the tax law of Canada. Investors use an RROF to get income from savings that they gain from RRSP (Retirement Savings Plan). Like an RRSP, an RRIF has the Canada Revenue Agency register it.
You will also be given the option to change an RRSP to an RRIF prior to turning 71 years old. Before reaching 71 years of age it is required that you withdraw all funds from your current RRSP plan, the entire amount is fully taxable as ordinary income; one defers this taxation by transferring investments in a RRSP into a RRIF.
