Withdraw money from an RRSP
What happens if I withdraw money from my RRSP?
A normal RRSP withdrawal is generally taxable income. The issuer withholds tax, but that withholding may be less than your final tax bill. First establish whether this is a normal withdrawal, a direct transfer, or a withdrawal under a specific program.
Where to begin
- Ask the issuer whether the plan is locked in; locked-in retirement money follows separate restrictions.
- Confirm whether you need cash or a direct transfer to another plan. A direct RRSP-to-RRSP transfer is not the same as withdrawing cash.
- For a cash withdrawal, ask the issuer about processing, withholding and any account fees before giving instructions.
- Check available contribution room before putting withdrawn cash back. A normal withdrawal does not give you a fresh allowance to re-contribute it.
- Retain the tax slip and include the taxable withdrawal when preparing the return for the year you received it.
Before you open the official service
- Plan type, withdrawal purpose and tax residency.
- Issuer instructions and the resulting tax slip.
Keep your actual documents and account details off this website. Use the official service’s current checklist before applying.
What to check for your situation
Spousal plans, non-residents, unused contributions, the Home Buyers’ Plan and the Lifelong Learning Plan have separate rules. Withholding is not a quote for your final tax.
Fees, processing times and document rules can change. This page helps you navigate; it does not confirm eligibility or replace the government’s instructions.
Official sources
canada.ca · Official websiteCRA — Making RRSP withdrawalsNormal RRSP withdrawals are generally taxable; locked-in plans generally restrict withdrawal. A direct RRSP-to-RRSP transfer is a transfer rather than a withdrawal.Checked
Prepared by Active K Digital from the linked public guidance. Read our source approach.