Withdraw funds from your group account

In this article:

Overview

Your ability to withdraw from your group account depends on your employer's rules. Some employers don't allow withdrawals while you're employed. Others may require approval or limit how many withdrawals you can make each year. 

Your employer sets these withdrawal rules for your group plan. They establish these policies to align with company savings goals or retirement strategies. While your employer controls access, the tax implications of any withdrawal are the same as they would be for a personal account.

Eligibility

To make a withdrawal from your group account, you must: 

  • Be an enrolled participant in your employer's Group Savings Program.
  • Meet the withdrawal criteria set by your employer (for example, tenure or specific approval). 
  • Have enough available cash in your account to cover the withdrawal.
Note: Withdrawals aren't available for all group account types (they aren’t available for DPSP withdrawals, for example). 

How to request a withdrawal

If you want to make a withdrawal, follow these steps:

Step 1: Confirm your employer's withdrawal rules

Check your plan documents or contact your HR department.

Step 2: Initiate the withdrawal request

Follow these steps to initiate a withdrawal from your group account:

Wealthsimple app Web
  1. Log in to your Wealthsimple app
  2. Tap your group account
  3. Tap Transfer money
  4. Select the destination account
  5. Tap Next
  6. If you're withdrawing from a Group RRSP or Group FHSA, choose the reason for the withdrawal
  7. Follow the prompts to complete your withdrawal
  1. Log in to your Wealthsimple profile on a laptop or computer
  2. Select your group account
  3. Select Transfer money
  4. Choose a bank account to deposit the funds to
  5. If you're withdrawing from a Group RRSP or Group FHSA, choose your Reason for withdrawal
  6. Enter an Amount
  7. Select Next
  8. Select Submit to complete your withdrawal
Note: If your group account type (for example, a DPSP) doesn't support online withdrawal requests, you won't see this option.

Step 3: Wait while your withdrawal processes

 If your employer requires approval for withdrawals, we'll contact them on your behalf after you've made your request. Once approved, we'll process the withdrawal, which typically takes about 5 business days to complete.

Note: Automatic processing after a period of employer inaction is rolling out in phases. Where it's live, if your employer doesn't respond within 15 business days, we'll automatically process your withdrawal on your behalf. Where it isn't live yet, our Client Experience team will process the request manually once the decision window has passed.

Once your withdrawal is approved, the funds usually land in your account within 3–5 business days, and in rare cases up to 7.

Note: Because we sell your investments to complete the withdrawal, the final amount you receive may differ slightly from what you requested, depending on market movement at the time of the sale.

Tax implications

Tax implications depend on the type of group account you're withdrawing from:

  • Group RRSP: Most withdrawals are considered taxable income and are subject to withholding tax. Exceptions include withdrawals made under the Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP).
  • Group TFSA: You can generally withdraw any amount at any time tax-free, provided your employer's rules allow it.
  • Group FHSA: Withdrawals for a qualifying home purchase are tax-free. Non-qualifying withdrawals are taxed as income.
  • Group DPSP: Withdrawals from a DPSP become taxable income and a T4A slip is issued in the year the funds are accessed. To defer taxes, funds can be transferred directly to an RRSP or RRIF, in which case no T4A is issued. At this time, we only support internal transfers from a DPSP to an RRSP or RRIF.
  • Group non-registered account: Withdrawing your contributions is tax-free. You'll need to pay tax on any realized capital gains or investment income earned in the account.

Frequently asked questions

Will I lose my contribution room if I withdraw?
  • For a Group RRSP, you don't get your contribution room back after a withdrawal.
  • For a Group TFSA, the amount you withdraw is added back to your contribution room on January 1st of the following year.
  • For a Group FHSA, withdrawn amounts don't get added back to your contribution room.
  • For a Group DPSP, contributions made by the employer reduce the employee's RRSP contribution room dollar-for-dollar for the following tax year.
    • Example: If an employer contributes $5,000 to an employee's DPSP in a given year, that employee's RRSP contribution limit for the next year will be reduced by $5,000.

Can my employer see why I am withdrawing money?

If your plan requires employer approval, your employer will be notified of the request. We only ask you to provide a reason for the withdrawal if you're withdrawing from a Group RRSP or Group FHSA. For other account types, you won't be asked to provide a reason.

What happens if my employer doesn't respond to my withdrawal request?

If they don't respond within 15 business days, we'll automatically process your withdrawal on your behalf. Funds typically take 3–5 business days to arrive after processing starts, and in rare cases up to 7. Where automatic processing isn't live yet, our Client Experience team will process the request manually once the decision window has passed.

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