By the end of the year in which you turn 71, you must either ________ your RRSP or ________ your RRSP assets into an income-producing plan.

Question

Quizplus · Accepted Answer

By the end of the year in which you turn 71, you must either cash in your RRSP or transfer your RRSP assets into an income-producing plan. Continuing to contribute is not an option after this age, and cashing in and continuing to contribute are not viable options as they would result in tax consequences. Transferring your RRSP assets into an income-producing plan, such as a Registered Retirement Income Fund (RRIF), allows you to continue to earn income on your investments while also meeting the legal requirement for converting your RRSP.

By the End of the Year in Which You Turn