Withdrawals from an RRSP

Provided the funds are not in a non-redeemable investment or a locked-in RRSP, you may withdraw any portion of your RRSP at any time.

In most circumstances, you will pay tax on the amount withdrawn from an RRSP as it is considered income in the year you make the withdrawal.

When you make your withdrawal, the financial institution will withhold 10 to 30 per cent for taxes. You'll get a credit for the tax withheld when you complete your tax return for the year. You may owe additional tax at that time, or be entitled to a refund of part or all of the tax withheld, depending on your marginal tax rate and other tax withheld for the year. 

Information for RRSP Tips is provided as a public service by the Chartered Accountants of British Columbia.