By the end of the year you turn 71, all funds you’ve been contributing to your RRSP must be converted into a RRIF. These funds will be used as income in retirement. Unlike your RRSP, you cannot contribute to a RRIF. Instead, in the year after you turn 71, you start receiving annual RRIF Payment Amounts, which the government will tax as income.

While CRA has an annual minimum amount, you can withdraw as much or as little as you want on top of that! This gives you the flexibility of accessing your funds when you may need a little more every now and then. Keep in mind, these amounts will be subject to withholding taxes.

More information about Registered Retirement Income Funds is also available on the Canada Revenue Agency's RRIF website.