RRSP With Holding Tax - Keeping it to 10 % for $ 7,000 withdrawal.
I have around $ 7,000 in RSP Savings Account.
Upto $ 5,000 withdrawal there is a 10 % with holding tax. and $ 5,000 to $ 15,000 its 20 % WH Tax.
so if I withdraw in batches of $ 3,500 twice will they withhold 20 % or just 10 % ? Will they catch on and know , what I did ? I will maybe wait 1 week between each withdrawal
I know I will get it back when I file my taxes, but right now I want just 10 % with holding tax and not 20 %, as I need the money urgently for some stuff. Its only getting 0.8 % interest any ways in the RSP account. I know it will be added to my income and I will get a T4 RSP slip later on. But I am OK with that, as I am travelling and taking a break from work for a few months, so my income will be less this year anyways.
Upto $ 5,000 withdrawal there is a 10 % with holding tax. and $ 5,000 to $ 15,000 its 20 % WH Tax.
so if I withdraw in batches of $ 3,500 twice will they withhold 20 % or just 10 % ? Will they catch on and know , what I did ? I will maybe wait 1 week between each withdrawal
I know I will get it back when I file my taxes, but right now I want just 10 % with holding tax and not 20 %, as I need the money urgently for some stuff. Its only getting 0.8 % interest any ways in the RSP account. I know it will be added to my income and I will get a T4 RSP slip later on. But I am OK with that, as I am travelling and taking a break from work for a few months, so my income will be less this year anyways.