Don’t Make this Costly Mistake! Be Sure to Declare RRSP Withdrawals as Taxable IncomeStuart Kirk, CIM®, Wealth Advisor
RRSP withdrawals must be part of your tax planning strategy. It is extremely important to understand the implications of Registered Retirement Savings Plan (RRSP) withdrawals on your taxable income in the year you make the withdrawal.
Below is a well written article that highlights the implications of RRSP withdrawals, and provides a good understanding of the tax system. Remember, seeking professional tax advice is always a prudent strategy.
Running afoul of the CRA on RRSP withdrawals can be a costly mistake
By Jamie Golombek
July 26, 2019
In my experience, most taxpayers seem to have a pretty good understanding of the tax consequences of making an RRSP contribution, namely that you get a tax deduction from your income for the amount you contribute. But it seems that fewer taxpayers have a comprehensive grasp of what happens to that RRSP on the flip side, when funds are withdrawn.