How much are withholding taxes on RRSPs and RRIFs? Jun 15th

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I need to withdraw $6,600 from my RRIF over the next six months. This amount is in addition to my annual minimum. If I do the withdrawals in six monthly amounts of $1,100 (total of $6,600), will the tax withholding rate be 10% on each $1,100, or will it be a higher rate on the total $6,600 over the six-month period? –Anne

Before we look at the withholding taxes on withdrawals from registered retirement income funds (RRIFs), let’s first review the withholding taxes on withdrawals from registered retirement savings plans (RRSPs).

What is the RRSP withholding tax?

RRSP contributions are tax-deductible, and income and growth are tax-deferred. However, withdrawals from an RRSP are taxable and generally subject to withholding tax, unless they are made using the Home Buyers’ Plan (HBP) for an eligible home purchase or the Lifelong Learning Plan (LLP) for qualifying post-secondary education.

Withholding tax is the percentage of your withdrawal that is kept at the source, which is the financial institution where you hold your RRSP…

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