An RRSP generally must mature by the end of the year its annuitant turns 71. Leaving the decision until the next spring's contribution season can miss the relevant deadline.
Start by listing every RRSP, including accounts held at different institutions.
Compare the available routes
The CRA describes three broad options: withdraw the funds, transfer them directly to a RRIF, or use them to purchase an eligible annuity. A combination may be appropriate, but the tax and payment consequences differ.
A cash withdrawal is generally included in income. A qualifying direct transfer to a RRIF does not require RRSP contribution room and does not create a new deduction. Receiving the money personally and then trying to redeposit it is not the same transaction.
An annuity also changes how and when money becomes available. Review the contract and payment terms before committing to that route.
Confirm contribution and processing dates
December 31 of the year you turn 71 is the deadline for contributions to your own RRSP, subject to available room. The ordinary first-60-days window does not extend that age limit into the next year.
Contributions to a younger spouse's RRSP may remain possible where the contributor has room and the spouse meets the age rules. That is a separate arrangement, not permission to keep contributing to the older person's own plan.
Ask the institution about processing time, required instructions and any investments that need attention before transfer.
Set up the following year's income
A new RRIF normally has no required minimum withdrawal in its establishment year; annual minimum payments begin the next year. Review payment frequency, tax withholding and whether an available spouse-age election suits the circumstances.
Keep the transfer confirmation and final RRSP statement. The year-end plan should identify where every account went and when the next payment obligations begin.
