Life Income Fund (LIF)
A LIF is established by the transfer of locked-in funds from a RPP, LRSP, LIRA and
some instances a LRIF. It is similar to a RIF in that it provides a flexible payout
option for RRSP or RRIF holders.
Prescribed Retirement Income Fund (PRIF)
Identical to a RIF, except it is only available to those with funds governed under
Manitoba or Saskatchewan pension legislation that are seeking a choice of investments
and income.
Locked-in Registered Retirement Savings Plan (RRSP)
A locked-in retirement plan established by the transfer of locked-in funds from
a RPP, another LRSP, LIRA, LIF (Life Income Fund) or LRIF (Locked-in Retirement
Income Fund).
Locked-In Retirement Account (LIRA)
An employer-created Registered Pension Plan (RPP) to provide a pension when an employee
retires or is terminated from employment. Fully vested proceeds of the RPP are considered
'locked-in' and can only be transferred into certain 'locked-in plans' including:
RSP pre-retirement plans, such as LIRA, LRSP; or RIF retirement income plans, such
as LIF, LRIF and Life Annuities.
Locked-in Retirement Income Fund (RIF)
Similar to a RRIF; however funds are locked-in permanently to ensure lifetime income.
The plan enables the holder to make lifetime investment decisions while providing
some flexibility in determining an income schedule. A RIF that has been created
from a locked in RRSP.
Retirement Income Fund (RIF)
A continuation of a RRSP providing similar tax deferral of principal and income
earned, except, contributions are no longer permitted. Instead, CRA dictates that
a minimum amount must be withdrawn annually. Retirement income payments are taxed
each year as received, thus spreading the taxation over your retirement. As with
RRSPs, such plans are available to individuals and spouses.
Registered Education Savings Plan (RESP)
A government-approved, tax-sheltered savings plan where a subscriber provides
financial assistance to a beneficiary for post-secondary education.
An individual RESP is for a single beneficiary. A family RESP can have one or
more beneficiaries; however each beneficiary must be related by blood or adoption
to each living subscriber, or have been related to a deceased original subscriber.
Contributions to an RESP are not tax-deductable, however tax on the income
earned on investments within the plan is deferred until the intended beneficiary
withdraws the funds.
Go to the Canada Revenue Agency RESP page to learn more.
Registered Retirement Savings Plan (RRSP)
A Registered Retirement Savings Plan (RRSP) is a vehicle available to
individuals to defer tax on a specified amount of money to be used for
retirement. The holder invests money in one or more of a variety of investment
vehicles, which are held in trust under the plan. Income tax is deferred until
the money (the amount originally deposited plus any interest, capital gains or
dividends made on that money) is withdrawn at retirement. RRSPs can be converted
into Retirement Income Funds (RIF).
Tax Free Savings Account (TFSA)
A tax free savings account is a registered savings account that allows Canadian
residents 18 years of age or older to earn tax-free investment income. Contributions
are not tax deductible, and withdrawals are not taxable. However, the income generated
in the account (for example, investment income and capital gains) is tax-free. As
of 2009, the annual contribution limit is $5,000. Questrade tax-free savings account
holders can trade anything available for trading in an RSP including stocks, gold,
bonds, mutual funds, etc.
USD RSPs
Hold U.S. currency in registered accounts and avoid costly currency conversion fees.
Choose to settle U.S. stock and options trades in USD or CAD.