Options when turning 69

The year you turn 69 is the last year that you can contribute to your RRSPs.

You can contribute to a spousal or common-law partner RRSP if your spouse or common-law partner is 69 or younger on December 31 of the year you make the contribution.

What can you do with your RRSPs?

By the end of the year you turn 69, you have to choose one of the following options for your RRSPs:

• withdraw them;
• transfer them to a RRIF;
• use them to purchase an annuity for life; or
• use them to purchase an annuity spread over a number of years.

When you withdraw funds from your RRSPs, your RRSP issuer will withhold some tax. For details, see Making withdrawals.

Your RRSP issuer will not withhold tax on amounts that are transferred directly to a RRIF or that are used to purchase an annuity. You may have to pay tax on the income when you start receiving payments from the RRIF. Enter these payments as income on your return for the year you receive them.

For details, see Transferring from one registered plan to another.

How turning 69 affects Home Buyers' Plan and Lifelong Learning Plan repayments

You can only make repayments to your RRSP until the end of the year you turn 69.

• You can repay to your RRSP the entire balance of the Home Buyers' Plan or the Lifelong Learning Plan.
  
  
• You can make a partial repayment to your RRSP. The remaining balance is calculated into yearly repayments according to the number of years remaining in your repayment period. Each year, as an annual repayment becomes due, include the repayment amount as income on line 129 of your return.

  or

• You can continue each year, as an annual repayment becomes due, to include the repayment amount as income on line 129 of your return.

Glossary

List of definitions related to this topic.

Forms and publications

• When You Retire pamphlet (P119)
• Lifelong Learning Plan (LLP) guide (RC4112)
• Home Buyers' Plan (HBP) guide (RC4135)
• RRSPs and Other Registered Plans for Retirement guide (T4040)