How to move from an RRSP to a RRIF https://t.co/06Ov56YQll via @financialpost – A RRIF = new account and is subject to a #FATCA Inquisition
— Citizenship Lawyer (@ExpatriationLaw) December 5, 2015
This is a problem that I have dealt with a couple of times (at least) in the last few months. Sooner or later your contributions (no later than the year you turn 71) must cease. At that point your RRSP savings must be converted to income. A RRIF is a popular way to convert that RRSP to income.
Remember that by creating a RRIF you are opening a new account. Interestingly some banks are treating the opening of the RRIF account as grounds to subject the retiree to the complete “due diligence” FATCA inquisition. This is strange. Annex II of the FATCA IGA clearly specifies that RRIFs are NOT subject to FATCA reporting.
U.S. citizenship creates planning problems to be solved!