• Cash out the entire RSP plan. This is inadvisable, as withholding tax will be taken and the withdrawal will be taxed as income for that year.

• Convert the RSP to a RIF. See below for all the rules surrounding rollovers and taxation of RIF accounts.

• Convert the RSP to an annuity. This may be an option for clients who are risk-averse.

• A final RSP contribution can be made until December 31 of the year the client turns 69.

• The client is not allowed to contribute in the first 60 days of their 70th year.

• The client may start receiving withdrawals from his/her RIF at any time, but is not required to do so until the end of the next calendar year after the RIF is opened. For example, if the RIF is opened in August 2001, the first withdrawal does not need to occur until December 31, 2002.

• The client is required to withdraw the minimum amount each year, starting the year after the RIF is opened.

• There is no withholding tax deducted for minimum withdrawals, but the minimum amount will be treated as income.

• Any amount over the minimum will be subject to withholding tax (see RSP withholding taxes rates) and will also be treated as income.

• When setting up the RIF, the client may opt to base the minimum payments on their spouse’s age. The election to use the younger spouse’s age must be made before the first minimum payment is received, and can not be revoked afterwards. If the spouse is younger, this option allows the annuitant to receive a lower annual minimum payment.

• Qualifying RIFs are those plans set up prior to December 31, 1992. Non-qualifying RIFs are those plans set up after this date.

• Qualifying RIFs are eligible for the lower minimum payment schedule for ages 71 to 77. Lower required minimum payments provide for greater tax deferral.

• If the two types of RIFs are combined, the total amount will be considered non-qualifying.

• By naming one’s spouse as the successor annuitant, the spouse will take over the RIF as it was originally established and becomes the new registered owner, without any tax consequences. Minimum payments will continue as before.

• The spouse can also be named the beneficiary of the RIF, but the RIF assets must be transferred to a new RSP or RIF, depending on the spouse’s age.

• If the spouse or any financially dependent children or grandchildren (by reason of physically or mental infirmity) are named the beneficiary of the RIF, the assets in the RIF will be added to the client’s taxable income in the year of the death.