Hi members,
I have a quick question regarding the RRSP. I have a company's group RRSP account with RBC bank. Now I am planning to move to India for good and wouldn't like to come back again. I have a very good amount deposited in my RRSP account as I have worked with a company for about 5 years and this is company's group RRSP account. Now my question is can I withdraw my RRSP amount? If yes, does CCRA charge me any penalty?
Many members might have this question so I thought let me ask this question in our DESI forum.
Thanks for all your help.
Regards
VP
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Ame amdavadi
Location: Mississuauga, Brampton
Posted on: 16-05-06 16:31:44
Hi
I do have the same question but I did not contribute so far
Let us wait, our fellow CD member will take their precious time to reply your question........
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mag
Quote:
Originally posted by vim_1008
Hi members,
I have a quick question regarding the RRSP. I have a company's group RRSP account with RBC bank. Now I am planning to move to India for good and wouldn't like to come back again. I have a very good amount deposited in my RRSP account as I have worked with a company for about 5 years and this is company's group RRSP account. Now my question is can I withdraw my RRSP amount? If yes, does CCRA charge me any penalty?
Many members might have this question so I thought let me ask this question in our DESI forum.
Thanks for all your help.
Regards
VP
The bank will deduct around 10% as tax. Then they'll issue a T4RSP slip, which means you'll have to add that to your yearly income and will be taxed according to the bracket you fall into
Check these links on the CRA website -
Withdrawing from your own RRSPs
http://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/withdrawals/yourown-e.html
Tax rates on withdrawals
http://www.cra-arc.gc.ca/tax/individuals/topics/rrsp/withdrawals/rates-e.html
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SS
Reiki Grand Master
Quote:
Originally posted by vim_1008
Hi members,
I have a very good amount deposited in my RRSP account as I have worked with a company for about 5 years and this is company's group RRSP account. Now my question is can I withdraw my RRSP amount? If yes, does CCRA charge me any penalty?
Regards
VP
the question has been answered by SS..........but your post makes me wonder
.. you have put in a 'very good amount' into RRSP without knowing the withdrawl rules and tax implications for not one or two but 5 years????Chandresh
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Chandresh
Advice is free – lessons I charge for!!
Location: God's own country
Posted on: 16-05-06 17:40:31
Quote:
Originally posted by sudesingh
The bank will deduct around 10% as tax.
TK-> To add to SS's post :
10% tax is only for amounts under $5000 on a given day. For one time withdrawals above $5000 on a given day the amount retained is at 20%. So to maximise your RRSP withdrawals, withdraw amount less than $5000 a day. So if you have $19,000 in your group RRSP, withdraw it in 4 equal instalments spread over 4 business days. The money retained will be 10%-for each day withdrawal of less than 5000 and then when you file your tax, you can get portions of the retained amount as per your gross salary for the year, your RRSp withdrawals and the tax bracket that you fall within.
TK
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I am a Gents and not a Ladies.
Location: Western Hemisphere
Posted on: 17-05-06 13:13:37
Besides the following, what are the implication of leaving the RSP amount alone until one can take it out at the appropriate age/time?
- Distance factor between India and Canada.
- Growth may not be as much as it may be if investment is done on a regular basis.
- No Canadian mailing address.
I am thinking one can still log in from India into his/her account online and call/email/write to issue disposition instructions if any.
You wouldn't lose the money already in there just because you don't live in Canada, would you?
Just curious. Please comment.
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Dimple2001
You can withdraw amounts from RRSp tax-free in certain conditions. One such condition is:
If you are a first-time home buyer then you can withdraw money from RRSP for downpayment but you have recontribute that money back into RRSP over the next 10 yeras. ( This was the rule few yrs ago, you can please check the current rule)
