I made a terrible mistake, and deposited $5,000 into an RRSP account in Quebec. How can I withdraw it?

I put money throughout the years into an RRSP account, even though I didn't have a large salary. Now I am on long term disability and I need funds to pay off a loan ($3,000) at 10% per annum. Is there a way I can take the money out as painlessly as possible? How much will it affect my income tax with Quebec and Canada?

Bad news. The penalty on early withdrawal of less than $5000 is 21% in Quebec!

See the link below for more details.

you can take the money out. The bank will have to withhold approx 20% of the money to cover taxes.

On your 2008 income tax the 5000 will be included as taxable income. Also you will have lost that 5000 of contribution room forever.

Have you deducted that contribution previously? If you haven't, apply for a refund using T3012A (on CRA's site). You'll be able to withdraw that money without being taxed on it.

Tags

　　Investment Account 　　Invest Money 　　Invest in Gold 　　Invest Fund 　　Income Fund 　　HYIP 　　High Yield 　　Hedge Fund

Related information

Any advice on paying off 65K in students loans?

I think you've made good choices so far: minimizing expenses by living with your parents, investing in a 401(k), focusing on the higher-rate loan. That said, a few suggestions: Since y...

Bank account has been frozen due to CC debt?

I went through a debt consolidation company and got screwed up as well. I don't think they can freeze your account and garnish your wages until they actually take you to court. Have you rece...

Can hospital provide education expense reimbursement by paying for a CNA to get a RN degree?

yes, some do :) you just have to ask around, some have sponsorships as well as assistance. i know nothing about tax consequences, but i do know some hospitals do help out with the schooling expen...

Banks Business Credit card / line of Credit options secured / NO credit check?

The first question is what are your long term goals? If you simply want one card try Wells Fargo bank they have a very good secured business credit card. If your goal is to eventually obtain ...

Why are Tax Credits not earned as a Pet Owner?

Pet ownership can not be verified on a tax return. Pets are not given any type of unique number like a SSN. Without this, everyone could claim they have 10 dogs and take deductions. Pet owners...

Is this a good plan for dealing with a 401(K)?

This sounds like a really good plan. When I read the title to this question, my brain screamed "ROTH!!", but I'm glad to see that you're already up on that, and only contributi...

Can this affect your credit and ability to get a job, & is it legal?

This will not affect your chances of getting a job. They are threatening you so that you will pay up. Call them and tell them you have no money to pay full balance, ask them why they cancelled th...

Need investor; earn 8 to 14%. realestate 80% max ltv.?

Nope

...