RRSP for life: keeping your RRSP past age 71
Today an RRSP must become a RRIF by the end of the year you turn 71. Budget 2026 proposes ending that rule. It is a consultation, not a decision.
Quick answer: Budget 2026 proposes merging the RRSP and RRIF rules so a plan no longer has to convert at age 71. Minimum withdrawals would still be required from 71. The government is also asking about letting a surviving spouse take over the plan as successor holder. Comments are due 8 January 2027, and no start date has been proposed.
Example
Linda turns 71 in 2028. Today she must convert her RRSP to a RRIF by the end of 2028 and start minimum withdrawals in 2029. Under the proposal she could keep the RRSP open, but she would still have to take at least the minimum each year from 71, so the tax on withdrawals is largely the same. The main gain is simplicity, and a spouse being able to take over the plan.
This year’s contribution room: RRSP dollar limit for 2026.
Whether this applies to you depends on your year-end and structure; ask about your own situation and a CPA replies by email, usually the same business day, free.
Common questions
Do I still have to convert my RRSP at 71?+
Would minimum withdrawals end?+
Where this comes from
Budget 2026 was tabled on 5 November 2026. Figures on this page are from:
- BLG — Federal Budget 2026: tax measures
- RBC Wealth Management — Federal budget 2026 overview
- Thor — 2026 Federal Budget: key tax measures
General information, not tax advice. Budget measures are proposals until enacted and can change. Before deciding anything, send an enquiry.