Converting Your RRSP to a RRIF: How It Works and What Happens at 71

Most people searching for how to convert an RRSP to a RRIF are really asking two things: when the conversion has to happen, and what it does to their taxes. The sections below take those in order, then compare the three choices the Canada Revenue Agency gives you when your RRSP matures.

How does converting an RRSP to a RRIF work?

Step one: decide how much to convert. You can transfer all of your RRSP, or many institutions allow you to transfer only part of it and leave the rest in the RRSP for now. Partial conversions can work differently from one institution to the next, so it may help to ask before you plan around one.

Step two: ask your institution to open a RRIF. If you have a younger spouse or common law partner, you can elect to base the yearly minimum on their age when the RRIF is opened. That election applies to the RRIF for its whole life, so it is worth settling before you sign.

Step three: direct the transfer. Money that moves straight from your RRSP into a RRIF is not a withdrawal, and the CRA says your RRSP issuer does not withhold tax on it. You may owe tax later, when payments start coming out of the RRIF.

Step four: plan for the first payment. No minimum withdrawal is required in the year you open the RRIF. From the following year, you have to be paid at least the yearly minimum, based on your age at the start of each year, and you can always take more. Our RRIF withdrawal table with the CRA minimum by age shows the minimum at each age, and our look at RRIF withholding tax explains what happens to amounts above it.

Should you convert before 71 or wait?

The CRA allows the conversion at any age up to the end of the year you turn 71, so the date works as a deadline, not a starting gun. Whether to convert earlier or to wait may depend on your household. These are questions we may explore together before choosing a date.

Do you need the income now, or do a pension, CPP and OAS already cover your spending? Would starting RRIF withdrawals earlier spread your taxable income across more years, or would it add income you do not need yet? Does a younger spouse or partner change the minimum you would be required to take? If you are still working, how would RRIF income stack on top of your pay? The answers can differ a great deal between two households of the same age, which is why we model them with real numbers instead of a rule of thumb. If you are still earning at 71, this column on saving tax while converting your RRSP to a RRIF may be a useful companion.

What are your three options at age 71?

In the year you turn 71, the CRA gives you three choices for your RRSP: transfer it to a RRIF, use it to buy an annuity, or withdraw it as cash. The table below compares how each one is generally treated, and you can combine them in any proportion.

Because the three choices can be blended, the mix may matter more than any single pick. Converting to a RRIF may preserve the most flexibility, though the balance stays exposed to markets and the yearly minimum rises with age. Blending in an annuity for part of the balance can add a floor of guaranteed income once CPP and OAS are in place, as we explored in our look at annuities versus GICs, though that certainty usually comes with less flexibility and less left for your estate. A cash withdrawal gives full access right away, but the whole amount can be added to one year of income, which may push it into a higher tax bracket than spreading the same money out. There is no universally right mix. It depends on your other income, your health, and what you want to leave behind.

Our complete guide to converting an RRSP to a RRIF goes further into the RRIF side of this decision, including the minimum withdrawal schedule and the younger spouse election. These are the kinds of tradeoffs we explore together, using your actual numbers, and adjusting the mix until the picture feels right. If you would like to see how your own conversion might look, we are happy to start with a thirty minute conversation.

Sources: Canada Revenue Agency, Options for your own RRSPs (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/rrsp-options-when-you-turn-71/options-your-rrsps.html) and Receiving income from a RRIF (https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-retirement-income-fund-rrif/receiving-income-a-rrif.html). Rules checked October 12, 2026.

This content is for general information only and is not personalized tax, legal, or financial advice. RRSP maturity rules and RRIF minimum withdrawal factors are prescribed by the Canada Revenue Agency under the Income Tax Act. Your actual choice among these options should consider your individual circumstances. Consult a qualified professional for advice specific to your situation.