Converting your RRSP to a RRIF: the age-71 deadline and what follows

The deadline and your three options

The deadline applies to every RRSP you own, including spousal RRSPs where you are the annuitant. By the end of the year you turn 71, each one must mature into one of three forms:

• A RRIF, which keeps the money tax-sheltered and invested but requires a minimum withdrawal each year after the first.
• An annuity, which turns some or all of the balance into a stream of payments, often for life. Our annuities guide covers how they work.
• A cash withdrawal, which is fully taxable in that year. For larger balances, this can push income into higher brackets and well into the OAS clawback range.

What changes when an RRSP becomes a RRIF

In many cases, the conversion is mostly paperwork. Investments can often move into the RRIF as they are, without selling, and the money stays tax-sheltered. Check with your financial institution about how it handles the transfer and any fees.

Two things do change. First, you can no longer contribute to that plan. Second, you must withdraw at least the prescribed minimum each year after the first, and every withdrawal is taxable income.

Financial institutions generally don't withhold tax on the minimum amount, but they do withhold on withdrawals above it. Withholding is a prepayment, not the final tax, so the amount you owe is settled on your return. Confirm the withholding rules with the CRA or your institution.

Quebec residents follow the same federal RRSP and RRIF rules, but our tax estimates don't include Quebec provincial income tax, so any Quebec figures from the calculator cover federal tax only.

Lorne's first RRIF minimum

Suppose Lorne lives in Halifax and turns 71 this year with $420,000 in RRSPs. Lorne converts to a RRIF in December. Because there's no minimum in the year a RRIF is opened, the first required withdrawal falls in the year Lorne turns 72.

The factor at 72 is 5.40%, so Lorne's first minimum would be $22,680 on a $420,000 January 1 balance. The table below assumes an illustrative 4.5% annual return and withdrawals of exactly the minimum. Under those assumptions, the minimum rises gradually — to about $24,959 at 80 and about $27,741 at 90 — while the balance slowly declines, to about $107,862 after the withdrawal at 95.

These figures are in nominal dollars with a single fixed return, so they show the shape of the schedule rather than a forecast. Real returns vary, and a lower return would mean a faster-shrinking balance.

Lorne can also take more than the minimum in any year — for example, to cover a large expense or to move money into a TFSA — with the trade-off of more taxable income that year.

How the minimum fits with other income

The RRIF minimum adds to every other source of taxable income. Suppose Lorne also receives CPP of $1,000 a month ($12,000 a year) and the full OAS of $762.50 a month (October–December 2026 rate), or $9,150 a year at that rate. With the $22,680 minimum, Lorne's taxable income at 72 would be $43,830.

The calculator estimates about $7,427 of combined federal and Nova Scotia tax on that amount, with a marginal rate of about 29%. That estimate leaves out the age amount, the pension income amount and other credits, so Lorne's actual tax would likely be lower.

Lorne's income is well below the 2026 OAS recovery threshold of $95,323. Someone with a larger RRIF, a workplace pension or other income could find that the minimum alone pushes them closer to it. The retirement tax calculator lets you test your own mix.

Converting earlier than 71

Nothing requires you to wait until 71. Some people open a RRIF in their 60s, sometimes converting only part of their RRSPs. Reasons people consider include:

• Pension income splitting. RRIF income qualifies for splitting with a spouse from 65, while RRSP withdrawals generally don't. Our pension income splitting guide explains the rules.
• The pension income tax credit. RRIF income from 65 can generally qualify for the federal pension income amount; confirm eligibility with the CRA.
• Smoothing income. Steady withdrawals in your 60s can lower the balance that later minimums are based on, the idea behind an RRSP meltdown.
• Simplicity. A RRIF can be set to pay a regular amount monthly or annually, which some retirees find easier to budget around.

A younger spouse and other details to check

When you set up a RRIF, you can elect to base the minimum on a younger spouse's or common-law partner's age. That lowers the factor and the required withdrawal each year. The election is generally made when the RRIF is opened, so it's worth deciding before the paperwork is signed.

If you still have RRSP room in the year you turn 71, you may be able to make a final contribution before the conversion deadline. And if your spouse is younger, contributions to a spousal RRSP may be possible after your own RRSP has matured, as long as you have room. Both rules have conditions, so confirm them with the CRA.

Finally, think about beneficiaries. Naming a spouse as successor annuitant or beneficiary can affect how the RRIF is treated after a death; ask your institution how its forms work.

A short pre-conversion checklist

A few questions can make the conversion smoother, whether it happens at 65 or 71:

• Which RRSPs do you hold, and will they be combined into one RRIF or kept separate?
• Will you base minimums on your own age or a younger spouse's age?
• How often do you want payments, and will you take only the minimum or a set amount?
• How will RRIF income combine with CPP, OAS and any pension for tax and the clawback?
• Are your beneficiary or successor annuitant designations up to date?

Where to go next

The RRIF minimum calculator shows your own schedule, and our guide to RRIF minimum withdrawals explains the factors in more depth. The RRIF withdrawals FAQ answers common questions.

If you're still several years from 71, the retirement timeline lays out the key ages — CPP from 60, OAS from 65, pension income splitting for RRIF income from 65 and the RRSP deadline at 71 — on one page.