Turning your RRSP into a RRIF: what happens at 71

Last updated Oct 2026.

Your RRSP can't grow tax-sheltered forever. By the end of the year you turn 71, it has to be wound up, and for most people that means converting it into a Registered Retirement Income Fund (RRIF). A RRIF keeps the money invested and tax-sheltered, but requires you to take out a minimum amount each year, and every dollar you take out is taxable income.

This post explains how the conversion works, what the minimums look like, and the planning ideas worth knowing about. To see your own minimums, try the RRIF minimum withdrawal calculator.

The deadline: December 31 of the year you turn 71

By the end of that year, you have three choices for your RRSP:

1. Convert it to a RRIF (the most common choice),
2. buy an annuity that pays a guaranteed income, or
3. cash it out, which adds the whole amount to your income that year. For most people this means a very large tax bill.

You can mix the first two. You can also convert earlier than 71 if you want to start a steady income, for example at 65 to use the pension income tax credit.

If you do nothing, many financial institutions will convert the plan to a RRIF automatically, but it's better not to rely on that. Contact your provider in the fall of the year you turn 71.

How the minimum withdrawal works

There's no withdrawal required in the year you open the RRIF. Starting the next year, you must withdraw at least a minimum each year, calculated as a percentage of the RRIF's value on January 1. The percentage rises with age:

Before 71, the factor is 1 divided by (90 minus your age), which is why it's 4% at 65. So a $300,000 RRIF at 72 (5.40%) must pay out at least $16,200 that year. You can always take more than the minimum, but not less.

Use a younger spouse's age to lower the minimum

When you set up the RRIF, you can choose to base the minimum on your spouse's or common-law partner's age instead of your own. If they're younger, the percentage is lower, which leaves more money sheltered for longer. You have to make this choice when you open the RRIF; you can't switch later. It's worth asking about before you sign.

Withholding tax: what comes out at the source

Your provider doesn't withhold tax on the minimum amount. Anything above the minimum has tax withheld at the source. Outside Quebec, the rates on the excess are:

• 10% on amounts up to $5,000,
• 20% on amounts over $5,000 up to $15,000,
• 30% on amounts over $15,000.

Quebec has its own rates. Withholding is only a prepayment. The withdrawal is added to your income, and the real tax is worked out on your return. If your total income puts you in a higher bracket, you may owe more at tax time. Many retirees ask their provider to withhold extra on the minimum to avoid a surprise bill or quarterly instalments.

Planning ideas worth knowing

The pension income tax credit and splitting

From age 65, RRIF withdrawals qualify for the federal pension income amount, a credit on up to $2,000 of eligible pension income. Some people convert a small part of their RRSP to a RRIF at 65 just to use this each year. RRIF income received at 65 or older can also be split with a spouse on your tax returns (up to 50%), which can lower the couple's total tax.

Watch the OAS recovery tax

Old Age Security is reduced by 15 cents for every dollar of net income above a yearly threshold ($95,323 for 2026 income, up from $93,454 for 2025). Large RRIF minimums in your late 70s and 80s can push income over that line. Some retirees draw down RRSP or RRIF money earlier, in their 60s, at lower tax rates, to keep later minimums smaller. Our post on when to start CPP shows how this can fit with delaying CPP.

Move extra withdrawals to a TFSA

If you don't need all of the minimum to live on, you can't put it back in a RRIF, but you can contribute it to a TFSA if you have room. Future growth there is tax-free and doesn't count toward OAS. Check your room with the TFSA contribution room calculator.

In-kind withdrawals

You don't have to sell investments to meet the minimum. Most providers let you transfer shares or funds "in kind" to a non-registered account or TFSA. The value is still taxed as income, but you stay invested.

Name a beneficiary or successor annuitant

If you name your spouse as successor annuitant, the RRIF can simply continue in their name when you die. Otherwise, the full value is generally added to your income in the year of death, unless it passes to a spouse or a financially dependent child or grandchild under specific rules. Check your designation when you convert.

Will your money last?

The minimum is a floor, not a spending plan. Rising percentages can mean bigger withdrawals than you need early on, and less later if markets disappoint. The retirement withdrawal calculator and the how long will my savings last calculator let you test different withdrawal rates and returns.

A short RRIF checklist

1. By the fall of the year you turn 71, contact your RRSP provider.
2. Decide on a RRIF, an annuity, or a mix.
3. Decide whether to use a younger spouse's age.
4. Choose payment frequency (monthly, quarterly or yearly) and any extra tax withholding.
5. Name a successor annuitant or beneficiary.
6. Plan how RRIF income fits with CPP, OAS and any pension.

FAQ

Can I still contribute to an RRSP after 71?
Not to your own. But if you have RRSP room and a younger spouse, you can contribute to a spousal RRSP until the end of the year they turn 71. See our spousal RRSP calculator.

Is converting to a RRIF a taxable event?
No. Moving money from an RRSP to a RRIF is a direct transfer and isn't taxed. Only the withdrawals are.

Can I have more than one RRIF?
Yes, but each has its own minimum. Consolidating can make planning simpler.

What about a LIF?
Money from a locked-in plan, such as a former employer pension, usually goes into a Life Income Fund, which has both a minimum and a maximum. Rules depend on the province that governs the pension.

This post is for educational purposes only and isn't financial, tax or investment advice. Rules, rates and limits can change. Confirm current details with Canada.ca, the CRA or your financial institution, and consider speaking with a qualified professional about your situation.