# Converting RRSP to RRIF



## TomB16 (Jun 8, 2014)

I've heard there is no age limit on converting an RRSP to RRIF but TD tells me I can't do it until I'm 55.

I'm 50 and about to retire. I'd like to minimize the tax by pulling money from my tax deferred accounts over as many years as possible.

Any advice? Should I just withdraw from my RRSP and pay the withdrawal fee?


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## OptsyEagle (Nov 29, 2009)

I've never heard of an age minimum except for locked in RRSP type plans.


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## heyjude (May 16, 2009)

The Laurentian Bank disagrees with TD.

https://www.laurentianbank.ca/en/pe..._futur/registered_retirement_income_fund.html

There is an old thread about this on CMF:
http://canadianmoneyforum.com/showthread.php/19394-Minimum-age-for-RRIF-conversion


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## GreatLaker (Mar 23, 2014)

heyjude said:


> There is an old thread about this on a CMF:
> http://canadianmoneyforum.com/showthread.php/19394-Minimum-age-for-RRIF-conversion


^^ Good thread.

While not what the OP asked, this is a good document on which accounts to draw from first in retirement. It's a couple of years old (before delaying OAS was allowed), and the tax rates are from AB a few years back. Very detailed document but informative if you can wade through it.
Which Account Should I Draw First In Retirement?


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## TomB16 (Jun 8, 2014)

Fantastic information. Thank you!


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## gibor365 (Apr 1, 2011)

TomB16 said:


> I've heard there is no age limit on converting an RRSP to RRIF but TD tells me I can't do it until I'm 55.
> 
> I'm 50 and about to retire. I'd like to minimize the tax by pulling money from my tax deferred accounts over as many years as possible.
> 
> Any advice? Should I just withdraw from my RRSP and pay the withdrawal fee?


TD is absolutely wrong! You can convert RRSP to RRIF at any age. Ask to talk to more knowledgable rep.
I'm in similar situation as you and will convert RRSPs to RRIFs next year.
Except minimizing tax , such conversion has many other benefits:
- you don't have to pay withholding fee for RRIFs withdrawals
- no withholding tax
- if RRSP is Spousal, there is not Attrition rule to contributor! Esp useful if you spouse still works ....


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## Spudd (Oct 11, 2011)

GreatLaker said:


> ^^ Good thread.
> 
> While not what the OP asked, this is a good document on which accounts to draw from first in retirement. It's a couple of years old (before delaying OAS was allowed), and the tax rates are from AB a few years back. Very detailed document but informative if you can wade through it.
> Which Account Should I Draw First In Retirement?


This link doesn't work for me, can you direct me to the proper link?


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## TomB16 (Jun 8, 2014)

gibor365 said:


> - if RRSP is Spousal, there is not Attrition rule to contributor! Esp useful if you spouse still works ....


Thanks, Gibor.

Do you mean attribution rule? Can I pull the money out of our spousal RRSP immediately? I think it would make sense for her to load up the RRSP and me to withdraw the same or more from mine, as she has a strong salary and will for a few years, while I make exclusively dividends.


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## GreatLaker (Mar 23, 2014)

GreatLaker said:


> ^^ Good thread.
> 
> While not what the OP asked, this is a good document on which accounts to draw from first in retirement. It's a couple of years old (before delaying OAS was allowed), and the tax rates are from AB a few years back. Very detailed document but informative if you can wade through it.
> Which Account Should I Draw First In Retirement?





Spudd said:


> This link doesn't work for me, can you direct me to the proper link?


I futzed the link and I think it's too late to edit my original post. Try this:
http://www.rgafinancial.com/articles/What-Account-Should-I-Draw-From-First-In-Retirement.pdf


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## Mookie (Feb 29, 2012)

TomB16 said:


> I've heard there is no age limit on converting an RRSP to RRIF but TD tells me I can't do it until I'm 55.


The TD person you spoke to is definitely wrong. I converted my wife's RRSP to a RRIF this year (BMO Investorline). She's 48.


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## heyjude (May 16, 2009)

Mookie said:


> The TD person you spoke to is definitely wrong. I converted my wife's RRSP to a RRIF this year (BMO Investorline). She's 48.


Presumably the ill-informed person at TD who said you couldn’t start an RRIF till age 55 is making that assumption because all the charts show a minimum withdrawal starting at age 55. So I’m interested to know what Mrs. Mookie’s minimum withdrawal is from her RRIF.


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## gibor365 (Apr 1, 2011)

TomB16 said:


> Thanks, Gibor.
> 
> Do you mean attribution rule? Can I pull the money out of our spousal RRSP immediately? I think it would make sense for her to load up the RRSP and me to withdraw the same or more from mine, as she has a strong salary and will for a few years, while I make exclusively dividends.


Yeap, that what I meant . And I was talking about Spousal RRIF , not SRRSP (afaik, you cannot do it with RRSP). You can withdraw RRIF minimum even if contribution as made same year, and you, not contributor will pay taxes on this RRIF minimum. Next year when I will be fully retired, I gonna convert SRRSP to SRRIF and start withdraw minimum, so my taxes will be very very low. I will open new Spousal RRSP and My wife will continue to contribute there reducing income taxes (and hers taxes are huge). 
This is the beauty of Spousal Registered accounts .


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## gibor365 (Apr 1, 2011)

> When a spousal RRSP has been converted to a RRIF, it becomes a spousal RRIF, and withdrawals are made by the spouse (not the contributing spouse). * There may be attribution of income to the contributing spouse for any RRIF withdrawals that are in excess of the minimum annual withdrawal for the year*, depending on the amount of spousal contributions in the year or the two immediately preceding taxation years.


http://www.taxtips.ca/rrsp/spousal-rrsp-rrif.htm


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## Mookie (Feb 29, 2012)

heyjude said:


> Presumably the ill-informed person at TD who said you couldn’t start an RRIF till age 55 is making that assumption because all the charts show a minimum withdrawal starting at age 55. So I’m interested to know what Mrs. Mookie’s minimum withdrawal is from her RRIF.


There is no minimum withdrawal required in the year the RRIF is established, so the minimum shown in Investorline is currently zero.

Starting next year, I expect that the minimum will follow the established formula of 1/(90 - age). In her case, that should work out to about 2.4% of the value of the RRIF as of Jan 1, 2018.

http://www.taxtips.ca/rrsp/rrifminimumwithdrawal.htm


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