When Do You Convert an RRSP to a RRIF in Canada?

A Canadian RRSP cannot stay an RRSP forever. By the end of the calendar year you turn 71, every dollar must move to a RRIF, an annuity, or out of the registered system entirely. This page walks through the deadline, the math behind RRIF minimum withdrawals, and the decision points before and after age 71. Every figure cites the Canada Revenue Agency or the Income Tax Act.

What age you must convert an RRSP to a RRIF

Subsection 146(2) of the Income Tax Act requires that any RRSP be matured by December 31 of the year the annuitant turns 71. Three options qualify as “maturing” the plan:

• Convert the RRSP to a Registered Retirement Income Fund (RRIF) — the most common path
• Use the proceeds to buy a registered annuity from a Canadian insurer
• Take the entire balance as a taxable cash withdrawal — rarely advisable because the full amount is added to that year’s income

The trigger is your 71st birthday year, not your 71st birthday. If you turn 71 in March 2026, your RRSP must be matured by December 31, 2026.

What happens if you do not convert by the deadline

If you do nothing by December 31 of the year you turn 71, CRA treats the entire RRSP balance as having been withdrawn on January 1 of the following year. The full balance is added to your taxable income for that year, and the financial institution issues a T4RSP slip showing the deemed withdrawal. For most retirees, that single year of inflated income pushes them through the OAS clawback range and several tax brackets — a tax bill that easily exceeds 40–50% of the RRSP value.

In practice most banks and brokerages convert the RRSP to a default RRIF if you don’t act, but the rules don’t require them to. Convert deliberately, with the investment mix you actually want, before the deadline.

RRIF minimum withdrawals explained

Once a RRIF is open, you must withdraw at least the minimum amount every calendar year, starting the year after the RRIF is opened. The minimum is based on the fair market value at the start of the year times a percentage set by age:

The full table is published in CRA’s RRIF minimum amount guidance. You can withdraw more than the minimum, but never less. Use the RRIF minimum withdrawal calculator to estimate dollars from your account balance.

Spousal age election

You can elect, on the application form, to use your spouse’s age instead of yours to calculate the minimum. If your spouse is younger, the minimum is lower for life — more tax-deferred growth. This election is irrevocable, so model it before signing.

Can you convert before age 71?

Yes. There’s no minimum age. The most common reasons to convert early:

• Eligibility for the federal pension income amount — RRIF income (but not RRSP withdrawals) qualifies for the $2,000 federal pension tax credit starting at age 65. Provinces add their own credits on top.
• Pension income splitting with a spouse — from age 65, RRIF income can be split up to 50/50 with a spouse for tax purposes. Useful if one spouse is in a lower bracket.
• Drawing down before CPP and OAS start — pulling RRIF income in your early-60s can cut lifetime tax if it lets you delay CPP/OAS to 70. See RRSP to RRIF strategy before CPP and OAS for the math.

RRIF vs annuity vs cashing out

Many retirees split: keep the RRIF for flexibility on most of the balance and put a smaller amount into an annuity for guaranteed lifetime income.

Tax impact of RRIF withdrawals

Every dollar withdrawn from a RRIF is fully taxable as income in the year of withdrawal — same as ordinary employment or pension income. No 50% capital-gains treatment, no dividend tax credit. Tax is withheld at source on amounts above the minimum, at the same federal rates as RRSP withdrawals (10% / 20% / 30%, plus higher in Quebec). Withholding is a prepayment, not the final tax — the ultimate amount owing depends on your total marginal rate.

RRIF income counts as net income for OAS clawback (15% on every dollar above the threshold) and the GIS reduction. Plan withdrawal timing around those thresholds where you can.

For RRSP withdrawal mechanics specifically, see RRSP withholding tax rates and how they apply.

Spousal RRSP and spousal RRIF considerations

A spousal RRSP doesn’t lose its character when it converts. The RRIF that comes from a spousal RRSP is a spousal RRIF, and the three-year attribution rule still applies: if your contributing spouse made a contribution to the spousal RRSP within the calendar year of the withdrawal or the two preceding calendar years, the withdrawal is taxed in the contributor’s hands, not the annuitant’s. Withdrawals at the RRIF minimum bypass attribution; only amounts above the minimum trigger it.

Detailed mechanics in Spousal RRSP and the three-year attribution rule.

Common mistakes

• Letting the bank auto-convert. Default RRIFs typically use conservative GIC mixes you wouldn’t pick yourself. Convert deliberately with the investment policy you actually want.
• Ignoring the spousal age election. If your spouse is meaningfully younger, electing their age cuts the lifetime forced-withdrawal amount.
• Withdrawing only the minimum out of habit. The minimum is a floor, not a planning tool. Run the math on early drawdowns — especially if you’re delaying CPP and OAS.
• Forgetting the deadline year. Conversion must happen by December 31 of the year you turn 71, not by your 71st birthday. Mark it in advance.
• Cashing out instead of converting. A lump-sum withdrawal at 71 lands the entire balance in one year’s taxable income, usually destroying tens of thousands in tax. Almost never the right move.