I am 59 and retired with no income. Can I withdraw from my RRSP?
Thank you for your question Sam. We are not able to provide advice, but the information provided below can help you make an informed decision.
A withdrawal from a Registered Retirement Savings Plan (RRSP) is counted toward your income for the year and must be reported at tax time for that year. There is a withholding tax on the total amount of the withdrawal. The amount of the withholding tax depends on how much you withdraw. Learn more about making RRSP withdrawals before you retire.
You may also be interested in learning about Registered Retirement Income Funds (RRIFs). You won’t pay any tax on investment earnings when you convert your RRSP to a RRIF. Your money will continue to grow tax free as long as it stays in the RRIF. You only pay tax on the withdrawals you make. Learn more about how RRIFs work. Annuities are another option for creating retirement income.
Speak to a registered financial advisor or tax professional about your options and to decide what is right for you.