# RRSP and DPSP - Home Buyer Plan



## Traciatim (Apr 3, 2009)

My employer provides a company matched DPSP as part of their retirement package and a co-worker wants to participate in the Home Buyer Plan to borrow funds from their RRSP. The amounts in the DPSP are vested and should be able to be moved but I can't find anything online that states rules around DPSP withdrawals around the Home buyer plan.

I'm fairly certain that I used funds from my DPSP under the home buyer plan a few years back, but can't recall if I had to pay tax on the amount withdrawn or if it all fell under the home buyer plan . . . does anyone know where to find this information for sure?


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## MoneyGal (Apr 24, 2009)

From my read of the CRA site, it's pretty clear that withdrawals are limited to RRSPs. 

Here's the Home Buyer's Plan guide: 

http://www.cra-arc.gc.ca/E/pub/tg/rc4135/rc4135-e.html#P306_28865

And here's the RRSP withdrawal form: 

http://www.cra-arc.gc.ca/E/pbg/tf/t1036/t1036-10e.pdf

However, you could also phone CRA (or have this person phone CRA) to ask questions of a representative directly.


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## Traciatim (Apr 3, 2009)

That's what I thought as well by the reading material, but I know for sure that I used the DPSP previously (2007) to buy my own home, and when I called the CRA they advised that as long as it's an RRSP plan and not in nay type of locked in plans it would be eligible. However I'm not sure if the agent I was talking to understood my question, even though I tried to ask it multiple times in different ways. 

I also have an inquiry in with my RRSP provider and our HR department, but I'm not certain I'll get a straight answer out of any of them. One of the other people I talked to who has used the plan said they were charged taxes on the DPSP portions during their process but I don't recall ever having to pay them when I made my own withdrawal a few years back. 

I wish things were simple


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## Traciatim (Apr 3, 2009)

Just in case anyone else is searching, the DPSP portion is not eligible under the HBP.

The reason I thought I used my whole portion was I purchased my house near the time my company switched from company matched RRSP to a company matched RRSP/DPSP combination, so most of my money was actually in an RRSP at the time.


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