Making RRSP Withdrawals: What You Should Know

When can I withdraw from my RRSP?

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You can make a withdrawal from your RRSP any time1 as long as your funds are not in a locked-in plan. The withdrawal, however, is subject to withholding tax and the amount also needs to be included as income when filing your taxes.

There are situations in which tax-deferred withdrawals can be made from your RRSP. For instance: If the funds are used for the purchase of a home for the first time through the Home Buyers' Plan or for funding education through the Lifelong Learning Plan. For each scenario, no withholding tax is paid, and the withdrawal will not be considered income (provided the withdrawal is paid back into the RRSP within the applicable timelines).


Withdrawing from an RRSP Before Maturity

Understanding the tax implications of withdrawing from your RRSP before maturity can help you decide if and when you should. If you make an early RRSP withdrawal:
  • You pay a withholding tax: The withholding tax varies depending on the amount withdrawn and your province of residence.
  • You pay income tax: Your withdrawals must be reported on your tax return as income. If your current income is higher than your retirement income, you’ll pay more taxes now.
  • You lose out on tax-deferred compounding: Because RRSP contributions can compound over time, even a small withdrawal made today can have a big impact on your savings later.
  • You lose your contribution room: When you withdraw funds from an RRSP, you permanently lose the contribution room you originally used to make your contribution.

Spousal RRSP Withdrawals

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Withdrawals from a Spousal RRSP, can only be made by the annuitant (generally, the person for whom the plan provides a retirement income).

If you contribute to a Spousal RRSP in the year of the withdrawal, or the two preceding years - you, not the annuitant, may be required to include the withdrawal amount as income. This is known as the attribution rule.

Learn more about Spousal RRSP withdrawal rules.

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Registered Retirement Income Fund (RRIF)

An RRIF offers you the flexibility to determine the amount of income you withdraw each year from your retirement savings, subject to an annual minimum amount.

Compound Interest Calculator

Use our compound interest calculator to see how your investments could grow over time.

See what types of RRSPs TD offers

RRSPs can help you meet your retirement goals.
Open a RRSP with TD and start saving for your retirement.
For a Limited Time: Invest $1,000 in a RRSP and get $1002.

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1 Subject to any restrictions on the investments held.

2 Conditions apply. Offer expires February 9, 2020.


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