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Withdrawing RRSP

4K views 8 replies 5 participants last post by  ions 
#1 ·
Hello,

I wanted to withdraw $5k from my RRSP to my regular cash acccount as I need the money.

If I withdraw this money before I file my tax return on April 30th do I have to subtract the $5K from my 2011 RSSP contribution or will the $5K count as income towards 2012 with the 10% withholding fee.

I expect my income for 2012 to be low so I am would prefer the latter scenario.


Thank you
 
#5 ·
I just withdrew $5,000. There is a 10% withholding fee and a flat fee of $50 + HST for taking the money out.

1) I will need to take another $3,500 out. I want to confirm that, as MrPPincer stated, if I do this next week I will still be charged 10% withholding fee and not be bumped to the 20% withholding fee.

2) Since I am self employed, can I deduct the $50 + HST flat fees as a business expense as the withdrawals are necessary for business operations?

Thank you.
 
#6 ·
1) You should only be subject to the 10% withholding rate...but some institutions will "bump" you to the higher withholding rate based on their own internal rules (which may add up the lump sums, or may add them if you make more than one withdrawal in a given time period). You will need to check with your institution to be sure.

2) No, not legally.
 
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