RRSP options when you turn 71

For 2007 and later years, December 31 of the year you turn 71 is the last day that you can contribute to your RRSPs.

As a result of the change to the conversion age:

• There will be no minimum amount that must be paid in 2008 out of a RRIF on January 1, 2008, if the annuitant was 71 years of age in 2008.
  This will allow individuals turning 71 in 2008 to benefit from the new, later RRSP maturation age. However, you can still choose to be paid the amount that otherwise would have been the minimum requirement.
  
  
• RRIF annuitants who turn 71 in 2008 and make RRIF withdrawals will be subject to tax withholding only to the extent that they would have been, had the minimum amount withdrawal requirement not been eliminated. Consequently, withdrawals up to the minimum amount that would otherwise be determined under the normal rules will continue to be exempt from tax withholding. However, you still have to include in your 2008 income all your RRIF withdrawals received in 2008.

Forms and publications

• Pamphlet P119, When You Retire
• Guide RC4112, Lifelong Learning Plan (LLP)
• Guide RC4135, Home Buyers' Plan (HBP)
• Guide T4040, RRSPs and Other Registered Plans for Retirement

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