11
Mar

My employer forced everyone to sign a thing that says the company will automatically contribute a certain amount of your income to an RRSP. I currently have about $650.00canadian in there. I'm about to quit my job so I was wondering if after I quit, if I can withdraw the money without penalty and without having to pay it back? Anyone know??


Answer:
Unless it is a locked RRSP, you can take out the money. However, you will have to treat the money as income in the year that you withdraw it, and the bank will withhold some of the amount for tax purposes.

There’s no penalty, and you do not have to repay it. It just transfers into a real income instead of a tax-deferred savings. It is your money, after all. You just didn't pay tax on it yet.


Answer:
you will be charged for taxes if you take it out. It is best to leave it in if you don't need the money. You will be fine if you currently aren't working or have a source of income.

This entry was posted on Wednesday, March 11th, 2009 at 4:24 pm and is filed under Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or TrackBack URI from your own site.

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