Yes. You can withdraw money from an RRSP, but withdrawals generally have tax consequences and may incur fees.
Some withdrawals can be made under the Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP), which follow different repayment and tax rules. Outside of these programs, RRSP withdrawals are typically taxable.
Fees for RRSP Withdrawals
Partial withdrawals (including HBP/LLP): $25.00 + tax
Full account withdrawals: $50.00 + tax
These fees apply because RRSPs are registered accounts that require additional processing and regulatory reporting.
Tax Treatment of RRSP Withdrawals
RRSP withdrawals are treated as taxable income in the year they are withdrawn.
A withholding tax is deducted at the time of withdrawal. This is not necessarily the final amount of tax you owe, but rather a prepayment toward your total income taxes for the year.
Federal withholding tax rates (outside Quebec):
10% on amounts up to $5,000
20% on amounts over $5,000 up to $15,000
30% on amounts over $15,000
For Quebec residents:
Federal withholding tax applies at reduced rates and is combined with provincial withholding:
Under $5,000: 5% federal + 16% Quebec
$5,000–$15,000: 10% federal + 16% Quebec
Over $15,000: 15% federal + 16% Quebec
Quebec provincial withholding tax applies only to single RRSP withdrawals.
Important to Know
Withholding tax is not your final tax calculation. Your actual tax owed depends on your total income for the year.
RRSP withdrawals permanently reduce your contribution room, except for amounts withdrawn under the HBP or LLP that are later repaid.