Although you cannot contribute to your RRSP after December of the year you turn 71 years old, you can still contribute to your spouse's or common-law partner's RRSP until the December of the year that they turn 71.

In the year you turn 71 years old, you must choose one of the following options for your RRSPs:

• withdraw them
• transfer them to a RRIF
• use them to purchase an annuity When you withdraw funds from your RRSPs, your RRSP issuer will withhold tax.

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 income tax and benefit return for the year you receive them.

After December of the year you turn 71 years old, you can contribute up to your RRSP deduction limit to a spousal RRSP or common-law partner RRSP if your spouse or common-law partner is 71 or younger on December 31 of the year you make the contribution.

Contributions you make to a spousal or common-law partner RRSP reduce your RRSP deduction limit. The total amount you can deduct for contributions you make to your RRSP or your spouse's or common-law partner's RRSP cannot be more than your RRSP deduction limit.

For more information, see RRSP options when you turn 71.

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.