Start RRIF Withdrawals at Age 62

Question:

I changed my plan to retire later when I'll be 62 years old. Now it's showing a RRIF withdrawal from age 62. I thought this was illegal - I don't even have a RRIF. Please can you tell me how to sort this out? Previously it was showing withdrawals first from non-reg funds.

I've already set the option under Source of Income under Registered to start withdrawals as late as possible to save on taxes.

Answer:

You can open a RRIF at any age. Check on the Options page to ensure that you selected to start RRIF withdrawals as late as possible. It's on the first tab.

On the Financial Information page on the Registered tab, you have selected purchasing an annuity from a life insurance company under RRSP Options. Is this your intent? If so, the RRSP balance is used to purchase a lifetime income. So it will not work to defer the RRSP. You'd have to change it back to RRIF and it should then only be accessed when you're 71.

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Written by RetireWare / Equisoft