Withdrawing Money from RRSPs

You have full control over your RRSP. At any time, you can withdraw some or all of your account value, as long as you’re willing to pay the tax.

Withdrawals are considered additional income and are taxed at your marginal tax rate. Withholding tax is applied to any amounts withdrawn over the year. For residents of Canada the rates are outlined in the table below.

RRSP/RRIF/Locked-in Pension Plan Account Withdrawal

RRSP/RRIF/ Locked-in Pension Plan Account Withholding Tax

 

Across Canada - Except in Quebec

In Quebec – Federal and Quebec Combined

 

 

Federal

Quebec

Total

< $5,000

10%

5%

16%

21%

$5,001 - $15,000

20%

10%

16%

26%

> $15,000

30%

15%

16%

31%


Withholding tax on your RRSP withdrawal may be only a down payment of your annual tax owing. If your marginal tax rate is higher for the year, there may be additional taxes owed when you file your tax return in April.

During your early retirement years, consider retaining your RRSP account and withdraw funds only when needed. The balance continues to grow tax-sheltered for your later years.