Converting your RRSP to a RRIF 
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Canadians contribute to an RRSP in order to finance their retirement. Thus, money saved during working years will be used to fund income during retirement. Withdrawals are then taken as opposed to contributions being made.

At any time before age 72, you can withdraw income from your RRSP. By the end of the year in which you turn 71, you must convert your RRSP to a Registered Retirement Income Fund (RRIF), which remains tax-deferred, or an annuity (annuities provide a guaranteed income for life or for a specified period, but income is dependent on interest rates). You must "mature" your RRSP by then, or CRA views your entire RRSP value as redeemed and therefore taxable. You must begin withdrawing taxable income from your registered savings in the next year. A minimum percentage of the value of your RRIF, increasing annually, must be withdrawn as taxable income. If you have a younger spouse or common-law partner, you can choose to base the withdrawals on the younger partner's age. An RRIF allows you to control how you invest your savings, just as you could during the RRSP accumulation period, and allows additional withdrawal income higher than the minimum withdrawal ruling set by the federal government.

Earned income after age 71
If you earn income (e.g., from employment, a professional practice, consulting contract, small business, or rental income, etc.), you can make a contribution right up to the end of the year you reach age 71. As well, you can make eligible RRSP contributions to a spousal RRSP as long as your spouse is under age 71. 

Transferring from your RRIF to RRSP
If you are 70 or 71 years of age at the end of 2007, under the changes to the age limit, you can transfer funds from your RRIF to an RRSP as long as you do it before the end of the year in which you become 71 years of age.

Start
at age

 Invest $19,000 annually at 8% in your RRSP until retirement,
creating income to age 90
  Retire @ 65 Retire @ 60 Retire @ 55 Retire @ 50
30 RRSP capital $3,274,019 $2,152,381 $1,380,013 $869,477
Annual income 283,987 177,028 110,353 57,513
40 RRSP capital 1,389,013 869,477 515,890 275,245
Annual income 120,482 71,512 40,968 21,372
50 RRSP capital 515,890 275,245 111,465 N/A
Annual income 44,748 22,638 8,856 N/A
Note: Growth is ax deferred in RRSPs and later taxed when takenas income at your applicable tax rate at that time. Inflation has not beem factored in.

Note: The information provided is based on current tax legislation and interpretations for Canadian residents and is accurate to the best of our knowledge as of the date of publication. Future changes to tax legislation and interpretations may affect this information. This information is general in nature, and is not intended to be legal or tax advice. For specific situations, you should consult the appropriate legal, accounting or tax expert.

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