Mr. Henderson, 62, has accumulated significant wealth in his RRSP. He plans to retire next year at 63. Assuming he wants to maximize his tax efficiency and avoid converting directly to a RRIF at age 71, what is the latest he can contribute to his RRSP and still deduct the contribution?

Question: Mr. Henderson, 62, has accumulated significant wealth in his RRSP. He plans to retire next year at 63. Assuming he wants to maximize his tax efficiency and avoid converting directly to a RRIF at age 71, what is the latest he can contribute to his RRSP and still deduct the contribution?

Answer options: ✅ The end of the year he turns 71.

• The day before his 72nd birthday.
• Any time before he converts his RRSP to a RRIF, regardless of age.
• The end of the year he turns 69.

Correct answer: The end of the year he turns 71.

Explanation: An individual can contribute to an RRSP only until the end of the year in which they turn 71. After this, the RRSP must be converted to a RRIF or an annuity, or withdrawn as a lump sum.