RRSP Contributions at age 71 (or older!)

By Scott Boassaly, MBA, President and Principal Advisor at Balance Financial

Here’s the scenario:

• Andy turned 71 this year and has earned income of $125,000 in the current year; his spouse, Mariam, is 68 and is retired.
• Andy will be entitled to $22,500 in RRSP contribution room in 2022.


Here’s the problem:

• Andy cannot make RRSP contributions next year; he must convert his RRSP to a RRIF by December 31 of this year.


Here’s the solution:

• Andy can make an RRSP contribution in December, 2021 before he converts his RRSP to a RRIF.
• His over-contribution for the month of December will be subject to a 1% penalty tax = $205 ($22,500 – $2000 over-contribution allowance x 1%)
• Andy’s over-contribution disappears in January, 2022; no more penalty tax from that point on.
• Andy has tax savings of $9767 from his 2021 RRSP contribution (at 43.41% marginal tax rate, minus penalty tax of $205).


Here’s an alternative:

• Andy could contribute to a spousal RRSP in Mariam’s name on January 1, 2022 (or anytime thereafter) and still benefit from the tax savings this contribution would generate.

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Picture of Scott Boassaly, MBA, President and Principal Advisor at Balance Financial

Scott Boassaly, MBA, President and Principal Advisor at Balance Financial

Scott founded Balance Financial in 2019, the culmination of a 15-year journey to provide accessible and customizable financial planning for clients. In his role as President and Principal Advisor, Scott develops business strategy for the company while managing his own practice. Working closely with his clients, Scott allows people to tell their story and write more chapters as they pave their financial paths together.

A former high school teacher and college instructor, Scott continues that passion for education by providing retirement workshops to the Federal and Provincial public service, as well as free public workshops to adults and teens.


Scott Boassaly



A former high school teacher and college Economics lecturer, Scott Boassaly has always valued education. This is further illustrated by his formal education. He holds a BA in History from Carleton University, a Bachelor of Education from The University of Ottawa, and an MBA from The University of Ottawa. This focus on education reveals itself in his approach to financial advice and in his commitment to offering free financial seminars to both adults and children. Celebrating his 20th anniversary as a wealth manager, Scott started his career at a large national firm where he quickly transitioned into management. Further industry experience was gained working with a reputable brokerage, then managing his own brokerage, Balance Financial, since 2019. Scott is the only certified responsible investment advisor in Ottawa and also holds the Real Wealth Manager designation.