If you’re 71 years of age, your City Savings Financial Services representative can help you set up a Registered Retirement Income Fund account (RRIF). It’s is a federal government-regulated investment plan, into which you can transfer registered funds without tax liability. The purpose of a RRIF is the creation of an income stream for life.
Starting the year after the RRIF is opened, an annual minimum payment must be taken and is considered taxable income. A payment does not have to be made the year that the plan is opened and you are free to withdraw any amount. Withholding tax will apply to the full withdrawal amount however.
This annual minimum payment is based on age as specified in the Income Tax Act. Your own age or your spouse’s age can be used to calculate the annual minimum payment. Using the younger of the two ages will result in a lower annual minimum payment. This means less money will have to be withdrawn and taken into taxable income for the year and more remains in the RRIF, earning tax-sheltered income. Your City Financial Services advisor can help you plan and implement your RRIF strategy. City Savings Financial Services – your connection to a bright financial future!
Effective August 23rd, 2011
| Term Non-Redeemable |
Rate % |
|---|---|
| 1 Year | .90 |
| 2 Years | 1.10 |
| 3 Years | 1.20 |
| 4 Years | 1.35 |
| 5 Years | 1.65 |
| Minimum $10,000.00 Variable rate deposit – 0.10% |
|
*EACH INDIVIDUAL RRIF CONTRACT IS INSURED TO MAXIMUM ON DEPOSIT THROUGH THE DEPOSIT INSURANCE CORPORATION
OF ONTARIO
