Explaining RRIF calculations

February 25, 2020

Registered Retirement Income Fund (RRIF) payments are calculated based on either your age or the age of your spouse or common-law partner. To maximize the tax-deferral opportunities of your RRIF, you should calculate your annual RRIF payments based on the age of the person who is younger. That’s because this will result in smaller mandatory withdrawals and extend the period of tax-deferral.

If you don’t need the money you receive from your mandatory RRIF payments, you might want to think about reinvesting that money into a Tax-Free Savings Account (TFSA) or a non-registered investment account. As long as there is contribution room (TFSA accounts have maximum contribution limits), contributing to a TFSA account provides tax-free gains on the money you invest in it. Non-registered investment accounts can generate dividend income and capital gain, both of which are tax efficient.

You may also like:

For more on Harvest ETFs click here.

The views and/or opinions expressed in the article are of a general nature and are for informational purposes only. Article contents should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Investors should consult their investment advisor before making any investment decision. 

You may also like…


For Information Purposes Only. Commissions, management fees and expenses all may be associated with investing in HARVEST Exchange Traded Funds (managed by Harvest Portfolios Group Inc.) Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Tax, investment and all other decisions should be made with guidance from a qualified professional.

Certain statements in the Harvest Blog are forward looking Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or  “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and have sufficient capital under management to effect their investment strategies, (ii) the investment strategies will produce the results intended by the portfolio managers, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the FLS contained herein are based upon what the portfolio manager believe to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS.

Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether as a result of new information, future events or otherwise.

Sign up to receive our monthly updates