# Transfer funds from RRSP to RIF while working



## Wiser14 (Nov 30, 2013)

I am 67 yrs of age and work part time during the summer. I also withdraw the minimum amount annually from a RIF. I have a separate RRSP savings account that I contribute to. Can I transfer the contributions to the RRSP into the RIF? Both accounts are at the same bank. Can I do this until age 71? If not, should I just contribute each year to the separate RRSP, then convert that to a RIF? What's the best way to handle this? Any advice is appreciated. Thanks.


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## OptsyEagle (Nov 29, 2009)

You can transfer as much money from your RSP to your RRIF as often and whenever you want. You will need to confirm with your financial institution on whether they will have a fee to process this type of request, but there will be no taxes payable and there should be no problem.

I am not sure if this is a question or not, but you can never contribute to a RRIF.


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## Wiser14 (Nov 30, 2013)

OptsyEagle said:


> You can transfer as much money from your RSP to your RRIF as often and whenever you want. You will need to confirm with your financial institution on whether they will have a fee to process this type of request, but there will be no taxes payable and there should be no problem.
> 
> I am not sure if this is a question or not, but you can never contribute to a RRIF.


Thanks very much OptsyEagle. I did a transfer last year and it worked OK, so will do again this year. Last year it was done by a bank financial advisor, but now have all my investments in self directed accounts, so will do the transfer myself. I appreciate your help.


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## mrPPincer (Nov 21, 2011)

Hey Wiser, I'm glad you brought this up, because I've found myself in a similar situation and Optsy's answer was informative to me as well, thanks Optsy.

A couple years ago at age 49 I converted my RRSP to a SDRRIF.
The plan was to slowly deregister it while working for money only 60 days per year & living extremely frugally.

This last year the market did so well that I find I have to open up a new RRSP again.
Not a bad problem to have


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## domelight (Oct 12, 2012)

Wiser14 said:


> I am 67 yrs of age and work part time during the summer. I also withdraw the minimum amount annually from a RIF. I have a separate RRSP savings account that I contribute to. Can I transfer the contributions to the RRSP into the RIF? Both accounts are at the same bank. Can I do this until age 71? If not, should I just contribute each year to the separate RRSP, then convert that to a RIF? What's the best way to handle this? Any advice is appreciated. Thanks.


I'm a point form kind of guy so here goes...

1. You can transfer an RRSP to a Rif at any age.

2. If you have a registered pension coming in then you will receive a $ 2,000 pension credit amount as a result of this. You can receive this credit at any age.
--Rif Income qualifys for the $ 2,000 pension credit only if the recipient is 65 years of age or older. 

So this means that if you do not already receive the credit from an RPP you should transfer at least $ 2,000 from your RRSP and withdraw $ 2,000 from your RIF then you will qualify for the pension credit making the withdrawl very tax attractive.

--If the withdrawl has an impact on either Guaranteed Income Supplement or OAS Clawback then you should have someone take a closer look.

3. Unless your doing it for investment reasons you should only be contributing to RRSP's if your income is above 43,000. Otherwise your simply deferring tax not saving it. (Unless you can maximize the pension credit in the future)


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