RRSPs or RRIFs?

RRSP withdrawals are ideal for people who need cash only occasionally. RRIFs are better suited to people who make weekly, monthly or quarterly withdrawals and they help you avoid administration fees, regardless of how many periodic transfers you make in a year. You can convert your RRIF into an annuity at any age or even reconvert it into an RRSP if you haven't yet turned 71.

Money deposited into a RRIF can only come from an RRSP or another RRIF. The main difference between RRSPs and RRIFs is that RRIFs require that an annual minimum be withdrawn at a rate fixed by the tax laws, based on the age of the annuitant or spouse. Anything exceeding this amount can be withdrawn according to the needs of the annuitant, which may vary from one year to the next.