We understand sometimes you just need the money.
But, before you withdraw from your plan, here are some things to consider...
Impacts of early plan withdrawals
By making an early RRSP withdrawal, you would not only be subject to a withholding tax but also a higher income tax burden due to the RRSP withdrawal counting as income.
Potential loss of employer match
Many plan sponsors have penalties in place to discourage early RRSP withdrawals. If your employer has such a penalty in place, you may lose their matching contributions for a set period of time.
In line with industry practices, Open Access charges a fee of $60 for processing withdrawal requests.
Loss of compound growth
Any amount you withdraw from your RRSP will no longer benefit from compound growth. Over the course of many years, your withdrawal can have a material impact on your nest egg in retirement. See the graph below for an illustration.
Click here to learn more about the costs of making early RRSP withdrawals.
If you still wish to make a withdrawal, please fill the form found below and email it to email@example.com