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A Registered Retirement Savings Plan (RRSP) can be converted to a Registered Retirement Income Fund (RRIF) at any time, but must be closed by the end of the year you turn 71. You can keep your RRSP investments and continue to grow your savings tax-free. However, beginning the year after a RRIF is opened, you must begin mandatory minimum withdrawals. These withdrawals are subject to withholding tax and included in your annual income for tax purposes.

We cannot advise on whether it is good or bad to convert an RRSP to a RRIF early. Speak to a financial representative to understand your options when considering converting an RRSP and to decide whether closing your RRSP early is right for you. You can learn more about getting retirement income from an RRSP and making withdrawals from a RRIF on GetSmarterAboutMoney.ca.