When you withdraw from your Registered Retirement Savings Plan (RRSP), your financial institution will hold back the tax on the amount you take out and pay it directly to the government on your behalf. There are a couple exceptions, including the Home Buyer’s Plan and the Lifelong Learning Plan. You have to report the amount you take out on your tax return as income. At that time, you may have to pay more tax on the money — on top of the withholding tax. It depends on your total income and tax situation. Learn more about the rules and consequences of taking money out of your RRSP.
You can speak to a registered financial advisor or tax professional for advice.