RRIFs

Registered Retirement Income Funds allow income to be taken out of the account on a minimum annual basis. Withdrawals are taxed. Investments inside the RRIF still allow for tax deferred growth. No new contributions are allowed to be made to a RRIF.

• How it works? — RRIFs allow for a minimum withdrawal each year. Withdrawals are taxable. No new deposit can be made into a RRIF that haven’t already been part of an RRSP. Your deposits stay tax deferred until withdrawals are made.
• General RIF Rules — On or by December 31 in the year you turn 71 your RRSP must be converted to a RRIF or life annuity. Each year you are required to take a minimum payment from your RRIF. The values are determined by a schedule set by the government and your age. You may elect to use your spouse’s age to base your minimum withdrawals on. It is not mandatory that you take out the minimum payment in the first year the RRIF is funded.
• Products available for RRIFs — The Biggar and District Credit Union provides access to several products which are RRIF eligible. These include registered savings accounts, term deposits, Index/Equity Linked deposits, and through Credential® you have access to mutual funds*, stocks and bonds*, and segregated funds**. Other products are available for deposit. Speak to your representative to determine which is right for you.

*Mutual funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in the credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated. Credential Securities Inc. is a Member-CIPF. ®Credential is a registered mark owned by Credential Financial Inc. and used under licence.

**Credential Financial Strategies Inc. offers financial planning, life insurance and investments to members of credit unions and their communities.