Registered retirement income funds (RRIF) and taxation
A RRIF is essentially an RRSP in reverse. The contributions you made to your RRSP throughout your working years grew on a tax-deferred basis. Payments received from your RRIF will be taxed as income in the year they are received. A RRIF allows you to receive lump sum payments at any time and these will also be taxed based on your total income in that year.
Canada Life is required to deduct and submit appropriate taxes to Canada Revenue Agency and, if applicable, to Revenu Quebec for all RRIF payments that exceed the minimum payout.
