RSP/LIRA account holders who will turn 71 years old before December 31, 2021

In accordance with the requirements of the Income Tax Act (ITA) requirements, all RRSP and LIRA accounts must be transferred to a Registered Retirement Income Fund (RRIF) or a Life Income Fund (LIF), by December 31 of the year during which the client turns 71.

https://www.ratehub.ca/investing/rrsp-rules

There is a maximum age for RRSPs. When Canadians reach the age of 71 they must close down their RRSPs at the end of the calendar year. Those who have RRSPs have three options when they reach 71. They can:

• Collapse the RRSP entirely. In practice, this means withdrawing all the money in the account
• Use the money in the RRSP to purchase what’s known as an annuity
• Convert the RRSP into a RRIF

You can not invest directly into a RIF, it has to flow through an RSP. So if your older than 71, you can not contribute to a RSP and so you can not shelter money into a RIF either. 

One can invest into a TFSA at these ages though. 

 For some tax tips for 2020

https://improvingfutures.ning.com/blog/tax-reminders-for-2020-taxes

When Can taxes be filed this year ?

The EFILE program is now closed for the electronic filing of your clients’ initial and amended T1 personal income tax and benefit returns.
EFILE and ReFILE services will re-open on Monday, February 22, 2021.

NEW CLIENT ONBOARDING FOR TAXES

1. Once we get T1013 processed with CRA we can continue
2. Next will send them an engagement letter once cra authorization is in place
3. Then we can down load prior yr to start comparisons so we do not miss anything
4. Review prior year physical tax returns for familiarity of file
5. Get 2020 info as available from client or cra
6. Finalize tax returns, review any items of concern with client
7. Get T183 signed
8. Process tax return with CRA
9. Check assessment once processed, compare with submission
10. Documents along with tax return and assessment to be given to client, copy may be scanned if business, rental, or emailing to client or high probability of return to e required in future for third party, ie mortgage renewals, etc.