Your investing questions, our clear answers.

Our response:

You are allowed to withdraw as much from your RRIF at any time you want. Here’s how it works:

• There is no maximum withdrawal limit.
• All withdrawals are fully taxable as income in the year withdrawn.
• If you take out more than the minimum amount, you’ll also pay withholding tax on the excess amount. Your financial institution will hold back an amount, based on the withholding tax rates, and pay it directly to the government on your behalf.

Even though withholding tax is deducted from withdrawals that exceed the minimum amount, you may still owe more tax later when you file your income tax return. It depends on your total income and tax situation. Learn more about making withdrawals from your RRIF.

Speak to your financial or income-tax advisor about any other additional costs – such as any transaction costs associated with selling your investments. Investments in non-registered plans are subject to tax depending on the type of investment and income they receive. Learn more about tax on investments.