Can You Withdraw from Your RRSP After Age 65? What You Need to Know

Learn if you can withdraw from your RRSP after age 65 and how converting to a RRIF or annuity impacts your retirement income and taxes.

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Yes, you can withdraw from an RRSP after age 65. At that point, many people convert their RRSP into a RRIF (Registered Retirement Income Fund) or purchase an annuity. Withdrawals are then made according to the terms of the RRIF or annuity and are subject to income tax. To ensure you maximize your income and minimize taxes, it's wise to consult with a financial advisor about your specific needs and situation.

FAQs & Answers

  1. Can I keep my RRSP after age 65? Yes. You can keep your RRSP past age 65, but by the end of the year you turn 71, you must convert it into a RRIF or purchase an annuity.
  2. What is the difference between an RRSP and a RRIF? An RRSP is a tax-deferred retirement savings account, whereas a RRIF is an account from which you withdraw retirement income. RRIFs require minimum withdrawals each year and are taxable.
  3. Are RRSP withdrawals after 65 taxed? Yes. Withdrawals from your RRSP or RRIF after age 65 are subject to income tax at your marginal tax rate.
  4. When should I convert my RRSP to a RRIF? You must convert your RRSP to a RRIF by December 31 of the year you turn 71, but some choose to convert earlier to start receiving retirement income.

Watch More

For more insights on maximizing your retirement income and understanding Canadian retirement accounts, explore our videos on RRIF rules, annuity options, and tax-efficient withdrawal strategies. These resources can help you tailor your retirement plan to your specific financial goals.

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