Comments on: What Happens To My RRSP When I Turn 71?

By: Harjit Deol

Harjit Deol — Sun, 20 Mar 2011 17:31:03 +0000

I want to know more about rrsp options wich one is best for me .

By: Tax Guy

Tax Guy — Sun, 27 Feb 2011 17:39:02 +0000

I cannot suggest strategies or give advice. However, if you do not need the income, you should wait unit the last minute to convert to a RRIF and then take your RRIF payment at the end of 2012! This will ensure you keep the money in the tax-deferred status for another year.Also, depending on the size of the RRIF, the annual payments may put you close to the OAS clawback of $66,000. Take a look at the OAS page.

By: Anne k

Anne k — Sat, 26 Feb 2011 05:16:45 +0000

I turn 71 in oct of 2012. I still receive about 40,000 a year in dividend income and also have rrsp savings. Can u suggest a strategy for me.
Thank u

By: Tax Guy

Tax Guy — Sun, 13 Feb 2011 12:54:47 +0000

Paul,
You have three options on December 31, 2011. Convert them to a RRIF or RIFF’s or purchase a registered annuity. These two options will allow you to defer the tax on the plan but you will be required to take regular taxable payments from the plan.

The other option is to cash in the RRSP’s and pay tax on the full amount now.

Note that you can do any combination of these three options to suit your needs. Also, note that you can move your existing RRSP’s to a single RRSP.

By: Paul D

Paul D — Sat, 12 Feb 2011 10:50:40 +0000

I have a number of RRSP’S.Do I have to deregister or cash them all in at age 71…Thank you…..Paul

By: Tax Guy

Tax Guy — Thu, 20 Jan 2011 04:56:37 +0000

Your non-registered assets will be considered sold at fair market value. Any gains and losses are taxable.

By: Rick

Rick — Wed, 19 Jan 2011 21:53:18 +0000

When I die, and my estate goes to my 2 daughters, will the non
registered money be subjected to tax?

By: Tax Guy

Tax Guy — Mon, 13 Dec 2010 15:29:15 +0000

You can continue to hold the same investments in your RRIF. Your brokerage firm will simply move the investments to the new account. You can also take your required RRIF payments “in-kind”: That is, move the investment from the RRIF to a non-registered type of account.

By: J.F. William B

J.F. William B — Sun, 12 Dec 2010 05:40:00 +0000

I have about $ 550,000. in rsp a/c and am 71 this year. Can I convert to RRIF and hold stocks in the rrif and continue to buy/sell stock on the markets.Thanks for your dvice, William

By: Tax Guy

Tax Guy — Wed, 11 Aug 2010 00:45:33 +0000

Hi there,
You just ask your financial institution to move your RRSPs into a single RRIF. Thry handle it all.