Fernanda is not interested in paying taxes on her RRSP savings at this time. What option can she choose for her RRSP funds?

The best choice for Fernanda is to roll over her funds to a registered retirement income fund (RRIF). This option allows her to defer taxes on her RRSP savings until she begins to withdraw money from the RRIF. By choosing this route, she can continue to enjoy the tax advantages associated with deferring income, as taxes on the funds are not triggered at the time of the rollover. This is particularly beneficial for individuals looking to maintain their savings without incurring an immediate tax liability.

While other options might seem advantageous in certain contexts, they do not align with her desire to avoid taxes at this time. For instance, withdrawing RRSP funds immediately would result in immediate taxation on the amount withdrawn. Transferring funds to a TFSA would not be feasible, as direct transfers from an RRSP to a TFSA are not allowed and could also lead to tax implications. Leaving the funds in the RRSP indefinitely could be an option, but eventually, she would still need to transition to a RRIF or withdraw the funds, at which point taxes would become applicable. Thus, opting for a rollover to a RRIF effectively addresses her goal of deferring taxes while allowing her to maintain her retirement savings within a tax-advantaged vehicle.