RRSP Rules
RRSP Rules1. You can contribute to your RRSPs until the end of the year you turn 71 as long as you have earned income. After 71 you have 3 options:
- Take the cash and pay taxes
- Buy a life annuity (Money goes to life insurance)
- Move RRSP to Registered Retired Income Fund (RRIF) but you have a minimum annual withdraw and this money is taxable
Best to choose: Tax Free Savings Account (TFSA)
Yet, negative for older Canadian taxpayers
2. You can contribute up to 18% of previous year’s earned income
3. Pay attention to your carry-forward
4. You may deduct the full amount of your RRSP from your income
5. You can invest your RRSP money
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