CRA rules state that the amount withdrawn from a Canadian RRIF each year is based on the owner's age or the age of the owner's spouse or common law partner, as selected upon registering the account, according to the Canada Revenue Agency. The rules allow the retiree to withdraw more than the minimum in any given year, but not less. It is not possible to apply amounts withdrawn over the minimum to the next year's minimum.
An registered retirement income fund is a Canadian retirement fund that a company sets up by transferring an amount of personal property to a bank, insurance company or trust company, states the Canada Revenue Service. Qualified types of property for an RRIF, as of October 2015, include money, guaranteed investment certificates, government or corporate bonds, mutual funds, or equity securities. The company then pays the retiree all or some of the earnings from that property or a portion of the property itself each year. The earnings in the fund are tax-free, but the retiree pays taxes on the amount he receives as income each year.
In some instances, the investor sets up the RRIF himself, making his own investment decisions for the fund, maintains the CRA. A financial institution still makes administrative decisions for that account. When administering your own RRIF, pay attention to legal changes. If property in the fund becomes non-qualified, you must pay taxes on it.