There are three types of withdrawals you can make from an RRSP:
Each of these withdrawals comes with its own process and rules, so please read on for how each withdrawal works and their tax implications.
Normal withdrawal
When you withdraw funds from your RRSP you'll need to pay withholding tax on the amount you withdraw.
We'll automatically take any withholding tax out of your withdrawal and pay it to the government. The amount of withholding tax we send depends on which province you live in –
| If you withdraw: | Withholding tax rate (excluding Quebec): | Withholding tax rate (Quebec residents): |
| Up to $5,000 | 10% | 20% |
| Between $5,001 and $15,000 | 20% | 25% |
| More than $15,001 | 30% | 30% |
For example, if you live in Ontario and withdraw $10,000 from your RRSP, the amount you'll receive after tax is $8,000. This amount is considered taxable income and will be added to your total income for the following tax year.
How to make a withdrawal
To make a normal withdrawal from an RRSP, you can follow the same steps as any other withdrawal through your profile.
Home Buyers’ Plan
The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $35,000 in a calendar year from your RRSP to buy or build a qualifying first home for yourself or for a related person with a disability.
How to make a withdrawal
You can make a Home Buyer's Plan withdrawal from your RRSP by following the same instructions as a standard withdrawal. Just make sure to select your reason for withdrawal as Buying a home with a Home Buyer's Plan. You can then follow the prompts on the screen to ensure you are eligible and complete the withdrawal.
Lifelong Learning Plan
The Lifelong Learning Plan (LLP) is a program that allows you to borrow up to $20,000 from your RRSP to pay for full or part-time education and training.
Funds must be in your RRSP for at least three months before they can be used for an LLP withdrawal. The maximum amount you can withdraw in any calendar year is $10,000.
How to make a withdrawal
You'll need to fill out an RC96E form to withdraw funds from your RRSP under the LLP. We will ask you to fill out the form when you set up the withdrawal through your Wealthsimple profile. To get the RC96E form, make sure you choose Education using a Lifelong Learning Plan as your Reason for withdrawal.
We will liquidate your managed RRSP for you when you make the withdrawal request. Trades take 3 business days to settle, so the entire process takes about 7 business days. If your withdrawal request gets cancelled, the funds for the withdrawal will automatically be re-invested for you.
You must liquidate your DIY trading RRSP before making the withdrawal request.
Converting your RRSP to an RRIF
If you're under the age of 71 and wish to convert your RRSP into an RRIF, you will need to contact our support team.
If you are over the age of 71 and would like to convert your RRSP into an RRIF, you can see below for more information. You will need to contact our support team in order to have your account converted.
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