Posts: 5775
Location: God's own country
Posted on: 17-05-06 17:34:42
Location: God's own country
Posted on: 17-05-06 17:34:42
To Add to Lana's post :
You can also withdraw from the RRSP -Tax free if you are enrolled in a full time course and the money is withdrawn to pay for tution fee.
TK
Sidenote : This individual is asking for withdrawing from the company's group RRSP plan. This may / maynot be the same as an Individual RRSP plan. Can some knowledgeable person confirm please.
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I am a Gents and not a Ladies.
Posts: 456
Location: Canada-Glorious and Free
Posted on: 18-05-06 00:36:38
Location: Canada-Glorious and Free
Posted on: 18-05-06 00:36:38
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
SS answered the question but had some minor errors. Note that for non-residents, the withholding amount is 25% unless there is treaty. It is safe to assume that India is not part of this treaty. Group or Personal RRSP makes no difference when withdrawing funds.
To clarify, CCRA treats RRSP withdrawals as income, like a salary or interest income. The amount you withdraw this year will be added to your salary and other incomes for the year and taxed accordingly. You can withdraw your RRSP tax free if you keep each annual withdrawal below the personal tax free amount (around $12,000 pa). So basically you have to claim the amount held back as a tax refund when you submit your tax return.
Quote:
Originally posted by dimple2001
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.
Money knows no distance. I don't see what distance has to do with investments in Canada.
Yes, growth will be stunted. But on the otherhand, investments can be viewed as a lumpsum. And so while the RRSP in Canada is not getting any new funds, a new investment in India could be.
I don't see why a mailing address in Canada is required. Like you said, internet is everywhere.
And finally, only you can lose your money. Nobody can lose it for you. So your investments are yours, no matter where you live, no matter if they are registered or not.
BV
BV
