Withdrawing from RRSPs between jobs

Withdrawing from RRSPs between jobs

You may be able to get the withholding tax back.

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job_loss_322When your income is low, you pay less tax on your RRSP withdrawals, so it can be an excellent time to shovel money out—as long as you trust yourself to put it right into a TFSA and continue saving. You’ll initially be hit with a substantial withholding tax, but if your total income for the year—including your RRSP withdrawal—is less that $10,000, when you file your return the tax is refunded.

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