Published: January 7, 2021
Last Updated: March 31, 2021
RRSPs offer Canadians a great way to defer tax on their retirement savings, but the key word is “deferred.” Upon withdrawal, the RRSP holder will see their taxable income increase for the year – except in the case of the first-time homebuyers plan or lifelong learning plan – with the withdrawal being taxed at the person’s marginal tax rate.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."