Interactive RRSP Conversion Checklist
Are You Ready to Convert?

You must close your RRSP by December 31st of the year you reach age 71. You can convert earlier if you need retirement income, but 71 is the absolute final deadline.

If your spouse is younger than 71 and you are still working, you can keep putting money into a Spousal RRSP using your unused contribution room to lower your taxes.

Moves your RRSP into a RRIF without paying tax right away. You keep your investments growing, but the government forces you to take out a minimum cash payout every year.

Hands your savings to an insurance company in exchange for a monthly paycheck for the rest of your life. No market risks, no investment management, just guaranteed income.

Uses part of your money to buy a guaranteed monthly annuity paycheque to cover basic bills (groceries, utilities), and keeps the rest in a RRIF for inflation growth and extra cash needs.

Cashes out your entire account at once. Warning: The bank immediately takes taxes out, and the full amount is added to your income for the year, pushing you into a much higher tax bracket.

If your husband, wife, or partner is younger than you, you can use their age to lower the mandatory minimum payout every year. This lets more of your money stay invested tax-free.

Allows your surviving spouse to take over your RRIF seamlessly if you pass away without triggering a large estate tax bill. (Note for Quebec residents: Spousal transfers are setup through your Notary or Will).

Ensures remaining money goes straight to your adult children or loved ones if both you and your spouse pass away, avoiding lengthy court and legal delays.

If you have small RRSP accounts sitting at different banks, combine them into one place before converting. This eliminates extra yearly fees and makes tracking your income easier.

Pick whether you want regular direct deposits every month to cover ongoing living expenses, or an annual payout schedule to align with your personal budgeting strategy.

RRIF minimums and monthly annuity payments are taxable income. Requesting voluntary income tax withholding directly through your bank or insurance company avoids an unexpected bill at tax time.

If using a RRIF, keep 1–2 years of liquid cash or GICs ready for minimum payouts so you never sell during market drops. If buying an Annuity, finalize your payment guarantee periods (e.g., 10 or 20-year guarantee).

Every dollar taken out of a RRIF counts as taxable income. If your total income gets too high, the government takes back 15% of your OAS. Plan your withdrawal amount to stay safe.

Once you turn 65, Canadian tax law lets you split up to 50% of your RRIF income with your lower-earning spouse to keep both of you in lower tax brackets.