RRSP or RRIF funds are only taxable when they are withdrawn from the plan. Income or capital gains that stay in the fund are not taxed. The legislation requires that you to convert your RRSP into a RRIF at, I believe, age 72 and from then on you are forced to withdraw a percentage of the fund each year whether you need the money or not. That is how the government makes certain there are taxes to be paid. If you reach your nineties you are forced to withdraw 20% per year.