When it comes to retirement planning, one of the most common questions Canadians ask is: At what age should I stop contributing to my RRSP? It’s a great question — and the answer depends on your age, your income, and even your spouse’s age.
Let’s break it down so you can make the best decision for your financial future.
Your RRSP Contribution Deadline: Age 71
You can continue contributing to your Registered Retirement Savings Plan (RRSP) up until December 31 of the year you turn 71. After that, the government requires that you either:
- Convert your RRSP into a Registered Retirement Income Fund (RRIF),
- Purchase an annuity, or
- Withdraw your funds (not ideal for tax reasons).
Once you hit that milestone, you can no longer contribute to your personal RRSP. However, your RRSP contribution room will still show up on your Notice of Assessment (NOA) and your CRA My Account. Even if you are 91 years old, that room doesn’t just disappear — it’s just not usable for yourself anymore.
What About Spousal RRSPs?
Here’s a smart strategy many people overlook:
If your spouse or common-law partner is 71 or younger, you can still contribute to a spousal RRSP even after your own RRSP contributions end.
- You use your own contribution room.
- You claim the deduction on your own tax return.
- Your spouse becomes the account holder and will eventually withdraw the funds.
This can be a powerful way to continue getting RRSP tax deductions later in life — especially if your spouse has lower income and will be taxed at a lower rate on withdrawals.
Can You Have an RRSP and a RRIF at the Same Time?
Yes!
When you convert an RRSP to a RRIF, it applies only to the specific account you converted. If you have multiple RRSPs, you don’t have to convert them all at once.
You can technically maintain both RRSPs and RRIFs at the same time — although after age 71, you can no longer add new contributions to your own RRSPs.
In rare cases, it’s even possible to transfer funds from a RRIF back into an RRSP — but only if you are 71 or younger.
What Happens to Unused RRSP Contributions?
If you made an RRSP contribution before age 71 but didn’t deduct it, you can carry it forward indefinitely.
This might be useful if you expect a spike in your income in later years (for example, if you sell a property or business). However, claiming a tax deduction sooner is generally better, because:
- You get your tax refund earlier.
- You benefit from the time value of money.
- Future tax rates are uncertain.
Unless your future tax rate will be significantly higher, it’s usually smarter not to delay.
Bottom Line: When Should You Stop Contributing?
Here’s the simple rule:
- You must stop contributing to your own RRSP by December 31 of the year you turn 71.
- You can still contribute to a spousal RRSP if your spouse is younger than 72.
Knowing this timeline ensures you maximize your retirement savings while minimizing tax headaches.
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