What penalties will I face if I don't convert my RRSP into a RRIF before age 70?

Jamie Golombek, vice-president of taxation and estate planning at AIM Trimark Investments, has the answer.

Jamie Golombek 1 March, 2004 | 2:00PM
Dear Expert:

What penalties does one pay if RRSP funds are not rolled into a RRIF prior to one's 70th birthday?

Expert Answer:

An RRSP matures at the end of the year the taxpayer turns 69. If an RRSP is not rolled over into a RRIF prior to age 70 or used to purchase an annuity, the amount is fully taxable as income in the year you turn 69.

To find out how much an RRSP contribution may save you, try Morningstar's RRSP Calculator.

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Jamie Golombek

Jamie Golombek