You can convert an RRSP into an RRIF anytime on or before an individual reaches their 71st year.
You can make contributions to your RRSP until December 31st of the year in which you turn 71. It is then mandatory to either withdraw all of the funds from the RRSP or convert the RRSP to a RRIF or life annuity.
If the funds are withdrawn from the RRSP, the entire amount will be treated as income and is fully taxable.
Converting the RRSP to a RRIF allows you to defer the taxes.
The investments that are in the RRIF will continue to grow without being taxed until the money is removed from the RRIF.
With a RRIF you can't make contributions to it and you must make minimum mandatory withdrawals from it each year.
Payments from a RRIF are considered taxable income for the year in which the withdrawal was made.
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