The year in which you turn 71 is a pivotal year in your retirement planning. Government regulations require that you terminate your Registered Retirement Savings Plan (RRSP) by December 31^st of your 71^st year. Your options will include converting your RRSP into a Registered Retirement Income Fund (RRIF) or choosing other RRSP maturity or retirement income options.

A few things you should consider:

• Your final contribution to your RRSP: You can make one last contribution to your RRSP in the year that you turn 71, based on your RRSP contribution limit. However, you must do so by December 31^st, not by March of the following year as you may have done in the past.
• Do you have a younger spouse and are still earning income? If your spouse is not yet 71, and you have unused contribution room in your RRSP, you can continue to contribute to your spouse's RRSP until they turn 71.
• Do you have unused contribution room carried forward from previous years? This is the time to take advantage and make those contributions. After December 31^st, it will be too late.

And finally . . .

There are significant advantages to be gained from having RRSPs and RRIFs and other tax-advantaged plans. To fully benefit from all the advantages these plans and strategies offer, please speak with an RBC advisor.