I need some emergency funds. If I haven’t paid into my RRSP, can I still withdraw from it?
A registered retirement savings plan (RRSP) is a federally regulated retirement savings option for those eligible that can help you save tax-free until you are ready to retire, and offers other tax advantages. RRSP contribution room is built based on your earned income, up to certain limits, and whether you contribute to a workplace pension plan.
Contributions to RRSPs are not automatic – you must set up an RRSP with a financial institution and make contributions, or, if available, join a group RRSP through your employer. If you have an existing RRSP that you have contributed to, you can make withdrawals from it at any time, subject to withholding tax. You must also report the amount you withdraw as income when you file your taxes. Learn more about making withdrawals from an RRSP before you retire.