By the end of the year your turn 71, you must close your RRSP.
You have three options at that point:
- Transfer your investments to a RRIF
- Use the funds to buy an Annuity
- Cash in your investments and claim the entire amount as income
Although you can set up a RRIF before you turn 71, you cannot make contributions to a RRIF. It is designed to be a source of income when you retire.