Saturday’s= Retirement
At the end of the year in which you turn 71 you have to turn your RRSP into a RRIF.
Many people think this means they have to pay tax on all the money in their RRSP. This is not true.
What happens when you turn 71 is that you have to start taking money out of your retirement funds. To make this happen your RRSP is converted into a RRIF.
You can have the same investments inside the RRIF as you had in the RRSP, you simply have to take a calculated amount out of the RRIF each year and pay tax on it.
No comments yet.