Q&A: Transferring RRSP

Question: My wife is 7.5 years younger than me. I want to transfer my RRSP to her when I become 71 years of age. If we need cash, a withdrawal can be made from my wife’s RRSP. If I transfer my RRSP to a RRIF then every year I have to make a withdrawal even if I do not need it. I believe it is mandatory because Revenue Canada want to get the taxes. – George V.

Gordon Pape answers: The idea won’t fly. You cannot transfer your RRSP to another person except in the case of marriage breakdown or death. However, when it comes time to convert to a RRIF you can base the withdrawals on the age of your younger spouse, which means your minimum payout will be reduced.