An RRSP must be converted into a RRIF (or an annuity) in the year in which the holder turns 71. Otherwise, it is liquidated and the entire amount becomes taxable in the year of its liquidation.
Factor governing the minimum withdrawal from an RRIF
Eventhough an RRIF allows your assets to continue to grow on a tax-sheltered basis, it is subject to minimum annual withdrawals.
The life income fund (LIF) is a registered retirement income fund into which you may transfer amounts from your locked-in retirement account (LIRA) or your locked-in registered retirement savings plan (locked-in RRSP).
|Age at the beginning of the year||Minimum withdrawal factors*|
|95 and up||20,00%|