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In a no-income year, can I use the basic personal amount to recover tax money if I withdraw from my RRSP?



Our response:

The basic personal amount is a non-refundable tax credit that allows you to earn a certain amount before being taxed.

You can take money out of your RRSP before you retire — for example, to cover an emergency situation. But you will pay an immediate tax on the money you take out. And you’ll permanently lose the contribution room you originally used to make the contribution. Learn more about making RRSP withdrawals before you retire.

Depending on your total income for the year, you may be required to pay additional tax at tax time, or you may be refunded some of the amount you paid. Speak to a tax professional to understand the effect of withdrawing from your RRSP, and to learn more about the immediate withholding tax.

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