Increasing the Age Limit for Converting RRSPs to RRIFs
RRSP provides Canadians with an opportunity to invest in their futures by saving for their retirement. A RRIF is an extension of the RRSP. While your RRSP is used to save for your retirement, a RRIF is used to systematically draw income during your retirement. However, once an RRSP is converted into a RRIF, you can no longer make contributions and you are required to make a minimum annual withdrawal, as set out by Federal regulations. The funds you withdraw from your RRIF are taxable as this amount is added to your taxable income for that year. Our government has increased the age limit for converting RRSP’s to RRIF’s from 69 to 71. This tax saving is great for Canadian Seniors. For more info, contact us!
