First-time homebuyers can withdraw up to $60,000 from their RRSP (as of April 2024) toward a home purchase (Home Buyers’ Plan); similarly, investors can borrow up to $20,000 from their RRSP to pay for education (Lifelong Learning Plan), and with the m...
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 ba...
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 ...
Are there tax penalties for transferring an RRSP to a TFSA? Yes. If you move funds from your RRSP to a tax-free savings account (TFSA), you must first take out money from your RRSP. That withdrawal will trigger withholding tax, which you’ll need to pay. Only then can you contribute...
Financing your First Home or Education: You can withdraw money from your RRSP without being immediately taxed to pay for your first home or education, under the Home Buyers' Plan or Lifelong Learning Plan (LLP)2.When can I withdraw my money? You can make a withdrawal from your RRSP any ...
it’s important to note that there are withdrawal rules and tax implications. Typically, withdrawals made from an RRSP are subject to taxation. However, there are specific circumstances in which you can withdraw from your RRSP without penalty, such as using the funds for a Homebuyer’s Plan ...
Her goal is to save enough for a down payment on her own home but she’s not confident she can do that while also saving for retirement. Why an RRSP? An RRSP would benefit Samantha because it will allow for the withdrawal of up to $60,000 for the purchase of her first home through...