You can now convert your RRSP to a RRIF (Registered Retirement Income Fund) and set up your retirement payments online. There's no form to fill out, and it takes about 10 minutes.
You choose how much you're paid and how often, set your withholding tax, name your beneficiaries and confirm your bank account. As you go, you'll see a projection of how long your RRIF could last.
You must convert your RRSP by the end of the year you turn 71, but you can convert earlier if it suits your plans. New to RRIFs? Start with What is a RRIF and how do they work?
Who can convert online
You can set up your RRIF online if:
- you have an RRSP with Common Wealth with a balance above $0
- you're 55 or older (60 or older for my65+ members)
- it's before December 15 of the year you turn 71
If you're under 55 and need to convert, contact us and we'll help.
What's included in your conversion
Your personal, employer and vested incentive RRSP savings all move into your RRIF. A few types of savings follow a different path:
- Locked-in funds (LIRA): these convert to a LIF through a separate process. Contact us and we'll take care of it with you.
- DPSP or DCPP: speak to your employer first about your options.
- Non-vested incentive funds: these stay in your RRSP for now. Contact us if you have questions.
- RRSPs at other institutions: each RRSP has to be converted separately. To keep everything in one place, transfer them to Common Wealth before you convert.
Because of this, the RRSP balance shown while you build your RRIF may be lower than the total on your account page. It only shows the savings that are converting.
How to convert your RRSP to a RRIF
- Open the RRIF page. Sign in to your Common Wealth account. From age 55, you'll find a link on your RRSP page under Accounts. From age 60, you'll also see a RRIF card on your Plan page. If you're turning 71 this year, you can use the link in our reminder emails too.
- Review the basics. The Convert your RRSP to a RRIF page explains how it works, includes a short Before you build your RRIF checklist and answers common questions. When you're ready, select Build your RRIF. If you're 55 to 59, you'll be asked to confirm you'd like to convert early.
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Set your payment schedule. Choose your Payment frequency (monthly, quarterly or annually) and your Payment amount:
- Mandatory minimum: the lowest amount the CRA requires you to withdraw each year.
- Fixed amount: a set amount you choose. If it's ever below the CRA minimum, we'll pay the minimum instead.
If your spouse or common-law partner is younger than you, you can select Use your spouse's age to calculate mandatory minimum. This lowers your required minimum and keeps more of your savings invested. You'll then pick when you'd like your payments to start.
- Choose your withholding tax. Pick the percentage of each payment you'd like held back for tax, from 0% to 100%. See How withholding tax works below.
- Add your beneficiaries (optional). Under Beneficiary designation, select Reuse RRSP beneficiaries to copy them over, or + Add beneficiary to add someone new. If a beneficiary is under 18, you'll need to name a trustee. If you don't add anyone, your estate is your beneficiary.
- Confirm your bank details. This is the account your RRIF payments are deposited into. Details we already have are filled in for you. You can update them by linking your bank or entering your transit, institution and account numbers.
- Review and submit. Select Review and check your summary. Tick the acknowledgement boxes, add your signature and select Submit. You'll see your conversion date and first payment date on screen, and we'll email you a summary.
As you make your choices, the Your RRIF projection chart updates to show your RRIF year by year and how long it's projected to last. It assumes a 3.35% annual return, so it's an estimate, not a guarantee.
Want a second opinion before you submit? Select Book a call to spend 30 minutes with one of our Certified Financial Planners.
When your RRSP converts and when you're paid
- Conversion date: your RRSP converts 15 days before your first payment, or on December 15 of the year you turn 71, whichever comes first.
- Payment dates: payments are processed on the 1st of the month and deposited by the 15th. Quarterly payments are made in January, April, July and October. Annual payments are made in December.
- If you choose the mandatory minimum: your first payment is in the next calendar year, since there's no minimum in the year you open your RRIF. Monthly and quarterly payments start in January, and annual payments in December.
- If you choose a fixed amount: monthly payments can start in any future month, up to December of next year.
- Each January: your minimum is recalculated based on your RRIF balance on January 1, so your payments may change from year to year.
How withholding tax works
RRIF payments count as taxable income. Withholding tax is a prepayment toward the tax you'll owe, not your final tax bill. Everything is settled when you file your tax return.
For each payment, we withhold whichever amount is higher:
- the rate you chose, applied to the whole payment, or
- the CRA's required rate, applied only to the part of your payment above your minimum.
The CRA's required rate depends on how much you take above your minimum over the year: 10% on up to $5,000, 20% on $5,001 to $15,000 and 30% on more than $15,000. In Quebec, the combined rates are 19%, 24% and 29%.
No tax is required to be withheld on the minimum itself. If you take only the minimum and leave withholding at 0%, nothing is withheld, so you may owe tax when you file. Choosing a withholding rate can help you avoid a surprise at tax time.
After you submit
- Your RRSP card shows Converting to RRIF on [date] until the conversion is complete.
- RRSP contributions keep processing until your conversion date. After that, your RRSP can no longer accept contributions. If you'd like to keep saving, you can contribute to your TFSA.
- Changed your mind? You can cancel the conversion from your RRSP page any time before your conversion date, then set it up again with new choices. It can't be cancelled on the conversion date itself.
- Once your RRSP has converted, the conversion can't be reversed. If you need to change your payments, withholding or bank account after that, contact us.
Viewing your RRIF
Once your conversion is complete, a RRIF card replaces your RRSP card on your dashboard. Your RRIF account page shows:
- your RRIF balance
- your payment amount, frequency and next payment date
- your total payments for the year
- your payment type and withholding tax rate
Upcoming and completed RRIF payments appear in Transactions. If you still have locked-in funds, your RRSP card stays on your dashboard for those. Any RRSP amounts that arrive after you convert, such as contributions already on the way or incentive funds that vest, move into your RRIF on December 15.
If you're turning 71 this year
We'll send you reminder emails throughout the year. Set up your RRIF online before December 15 to choose your own payment schedule.
If we don't hear from you by December 15, we'll convert your RRSP automatically so it isn't deregistered and fully taxed. Your RRIF will be set up with these defaults:
- Payment amount: mandatory minimum
- Frequency: once a year, in December of the following year
- Withholding tax: none
We'll email you once it's done. Please check that your banking details and beneficiaries are up to date so your first payment isn't delayed. From December 15 of that year, online setup is no longer available, so contact us for help.
Frequently asked questions
Can I change the spouse's age setting later?
No. If you choose to use your spouse's age, it's set when you open your RRIF and can't be changed afterwards. This is a CRA rule.
What's the difference between a successor annuitant and a beneficiary?
A successor annuitant takes over your RRIF if you pass away and keeps receiving your payments. Only your spouse or common-law partner can be named, and they must be your only beneficiary at 100%. A regular beneficiary receives the value of your RRIF instead, and the account is closed.
Will a RRIF affect my OAS or GIS?
It can. RRIF payments count as taxable income, which can reduce Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). Our financial planners can help you plan the timing and amount of your payments.
Do my investments change when I convert?
No. Your savings stay invested. Your RRIF simply pays you an income from them.
I already have a RRIF with Common Wealth. What's new for me?
You'll now see a RRIF card on your dashboard and a RRIF account page with your balance, payment details and next payment date. Your RRIF payments also appear in Transactions.
Still have questions? Submit a request and our team will be happy to help.
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