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By the end of the year you turn 71, you must close your RRSP and convert it to a RRIF, annuity, or take your RRSP as cash (or any combination of these options). Learn more about getting retirement income from your RRSP, and making withdrawals from a RRIF account.

Before you close your RRSP, any withdrawals you make (with the exception of withdrawals as part of the Home Buyers’ Plan or Lifelong Learning Plan) are subject to withholding taxes – the tax level depends on the amount of the withdrawal and your province of residence. You also have to report the amount you take out on your personal tax return as income. At that time, you may have to pay more tax on the money — on top of the withholding tax. It depends on your total income and tax situation. The Canada Revenue Agency has additional information on withdrawal tax rates, and making withdrawals from your RRSP.