Must I collapse all my RRSPs?
Question: I will be 65 this year and my income will be reduced. I have a number of RRSPs in two banks. Can I purchase a RRIF with the smaller of the two accounts and leave the other account till I am 69? Or, must I collapse all RRSPs at once?
You can have a RRIF and your RRSPs at the same time. Many people your age use a strategy of setting up a small RRIF so as to benefit from the Pension Tax Credit, which applies to the first $1,000 of pension income. That includes RRIF income if you are 65 or older.