You turn 71 years old

After the end of the year you reach the age of 71, you will not be able to repay any withdrawals to your RRSP or PRPP or both. This is because you cannot contribute to an RRSP or PRPP after the end of the year you turn 71 years of age.

In the year you turn 71, you can choose one of the following:

  • repay your remaining repayable balance to your RRSP or PRPP or both
  • make a partial repayment to your RRSP or PRPP or both. Your remaining repayable balance at the beginning of the year you turn 72 will be divided by the number of years remaining in your repayment period, and that calculated amount will be included as income on line 129 of your income tax and benefit return for each of those years
  • make no repayment to either your RRSP or PRPP. Your remaining repayable balance at the beginning of the year you turn 71 will be divided by the number of years remaining in your repayment period, and that calculated amount will be included as income on line 129 of your income tax and benefit return for each of those years

Example 

In 2010, at the age of 64, Henry makes an LLP withdrawal of $9,000. His repayment period began in 2015. The required annual repayment is $900.

In 2017, he reaches the age of 71. Henry's LLP balance at the beginning of 2017 is $7,200 and he can choose to make an LLP repayment, or to include $900 in his income.

In 2017, Henry decides to contribute $3,000 to his PRPP and to designate that amount as a repayment under the LLP. This leaves him with an unpaid balance of $4,200 at the end of 2017. Henry will have to include $600 ($4,200 ÷ 7) in income for each year from 2018 to 2024.

If he did not repay any part of the $7,200, he would have to include $900 in income each year from 2017 to 2024. If he repaid the entire $7,200, he would not have to include any part of this amount in his income.

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