I am considering changing financial institutions for my RRIF and LIF. This has become an incredibly challenging and time-consuming process. Issues keep popping up everywhere I turn. One such issue is the payments made from your RRIF or LIF when you move your account. If you move your account, the remaining RRIF or LIF payments will have to be made for the current taxation year.
In other words, say you moved your RRIF in January after your first payment. When the account is transferred, the payment will be for the remaining eleven months of the year. One lump sum.
Example: Move RRIF January 15, 2026
Payment Date: The 10th of the month
Payments made monthly for 2026: $5,000
One final payment is to be made before transfer: 11 * $5,000 = $66,000
Depending on how you manage your portfolio, this may be easy or hard to fund.
Just another thing to think about. You must plan your RRIF or LIF account transfers for the end of the year to avoid this situation.
You will need to fund a payment of $11,000, and the RRIF payments will recommence on January 10, 2027, if that’s your payment date.
Why did I ever start up with this all those years ago and have these shackles on my legs every time I try to do something?
