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RRSP / RRIF conversion deadlines, in plain terms

You can't keep an RRSP forever. By a fixed age, it has to become something that pays out — and the deadline shapes your whole late-retirement tax picture.

The age-71 deadline

  • •You must close your RRSP by December 31 of the year you turn 71.
  • •Three options: convert to a RRIF, buy an annuity, or cash it out (almost always a bad idea — the whole amount becomes taxable at once).
  • •Most people choose a RRIF, which keeps the money invested but forces annual minimum withdrawals.

The first withdrawal timing

  • •If you convert in the year you turn 71, the first RRIF minimum is due the next year (age 72) — not immediately.
  • •That gives you one extra year with no forced withdrawal, which can be useful for timing.

Locked-in accounts (LIRA → LIF)

  • •A LIRA (locked-in retirement account, from a former pension) also converts — usually to a LIF — by a similar deadline (varies slightly by province).
  • •A LIF has both a minimum and a maximum annual withdrawal, unlike a RRIF which has only a minimum.

Why the deadline matters early

  • •Waiting until 71 to touch your RRSP means a large balance converts into a RRIF with large forced minimums.
  • •Drawing it down before 71 (tax-smoothing) leaves a smaller RRIF and more control over taxable income later.

Model the conversion

The Sequencer converts your RRSP to a RRIF at 71 and starts minimums at 72.

Try the Tool