You can take money out of your Registered Retirement Savings Plan (RRSP) before you retire, but you will pay an immediate withholding tax (up to 30%) on the money you take out, and possibly more at tax time. And you’ll permanently lose the contribution room you originally used to make the contribution. Learn more about making RRSP withdrawals before you retire.
You must first withdraw funds from your RRSP if you would like to use these funds to contribute to your Tax-Free Savings Account (TFSA). You must also have TFSA contribution room available.
Speak to a financial advisor to understand the process of closing your RRSP. An advisor can also help you plan withdrawals, and evaluate the pros and cons of making this change based on your financial goals and personal financial situation.