Retroactively Withdrawing RRSP

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May 24th, 2020 10:54 pm

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May 23rd, 2020 6:44 pm

virgozero [OP]: Newbie; Feb 29, 2012; 75 posts; 21 upvotes; VANCOUVER

May 23rd, 2020 6:44 pm

Retroactively Withdrawing RRSP

Does anyone know if one can retroactively withdraw RRSP for the preceding year?

Situation:
2019 Income is very low.
Forgot to withdraw RRSP
2020 Income is very low.
Collapsing entire RRSP account in 2020, entire RRSP amount added to 2020 Income resulting in a high marginal tax rate.
Do not want to delay withdrawal, do not want to defer to RRIF, aiming to have zero income going forward.
May I withdraw RRSPs today - in 2020 - and designate it as a 2019 withdrawal and include it in my 2019 income on my 2019 tax return that I will be filing soon.

Thank you guys! I have done much googling and found 0.

9 replies

May 23rd, 2020 6:51 pm

niksfever: Member; Aug 17, 2011; 261 posts; 220 upvotes

May 23rd, 2020 6:51 pm

No. A withdrawal in 2020 is a withdrawal in 2020.

+1

May 23rd, 2020 7:18 pm

PriceHunter: Deal Addict; Nov 12, 2015; 3649 posts; 4098 upvotes

May 23rd, 2020 7:18 pm

The Financial institute will report it as an RRSP income that will be sent to CRA, and will be income for 2020.

Stay strong, situation always looks harder and that it will never end when you are in the middle of it, but remember past experiences, everything has an ending.

May 23rd, 2020 7:19 pm

PriceHunter: Deal Addict; Nov 12, 2015; 3649 posts; 4098 upvotes

May 23rd, 2020 7:19 pm

However, if you are planning on using it beginning of this year, maybe return some end of year if you have RRSP room available.

Stay strong, situation always looks harder and that it will never end when you are in the middle of it, but remember past experiences, everything has an ending.

May 23rd, 2020 7:23 pm

virgozero [OP]: Newbie; Feb 29, 2012; 75 posts; 21 upvotes; VANCOUVER

May 23rd, 2020 7:23 pm

Thanks you two.

The goal is to have no more money in my RRSP after 2020 - I am just hoping to avoid a large tax hit by spreading the withdrawals between 2020 and backwards to 2019. I didn't think it was possible but I was just hoping to get more opinions since the 2019 taxes haven't been filed yet - whether I can just self-report that I made a $10,000 RRSP withdrawal in 2019 even though I didn't.

May 23rd, 2020 7:27 pm

clueless dude: Member; Aug 18, 2019; 442 posts; 417 upvotes

May 23rd, 2020 7:27 pm

Ir you can use home buyer's plan or lifelong learning plan if either is applicable?

~teslanaire2bitcoinaireButStillCheapLurking@RFDForDeals~

May 23rd, 2020 11:28 pm

virgozero [OP]: Newbie; Feb 29, 2012; 75 posts; 21 upvotes; VANCOUVER

May 23rd, 2020 11:28 pm

I do have a $11,000 balance remaining on my Home Buyers Plan. Can I just add that entire amount to my income in lieu of repayment? That would be the equivalent of me withdrawing $11,000 in 2019.

Am I understanding your suggestion correctly?

+1

May 24th, 2020 4:19 pm

ml88888888: Deal Fanatic; Jan 19, 2017; 9327 posts; 5584 upvotes

May 24th, 2020 4:19 pm

virgozero wrote: ↑ Thanks you two.

The goal is to have no more money in my RRSP after 2020 - I am just hoping to avoid a large tax hit by spreading the withdrawals between 2020 and backwards to 2019. I didn't think it was possible but I was just hoping to get more opinions since the 2019 taxes haven't been filed yet - whether I can just self-report that I made a $10,000 RRSP withdrawal in 2019 even though I didn't.

That will be called cheating if you didn’t take money out from RRSP and CRA will know since the gov’t didn’t receive the T4RRSP slip from the bank.

May 24th, 2020 4:21 pm

ml88888888: Deal Fanatic; Jan 19, 2017; 9327 posts; 5584 upvotes

May 24th, 2020 4:21 pm

virgozero wrote: ↑ I do have a $11,000 balance remaining on my Home Buyers Plan. Can I just add that entire amount to my income in lieu of repayment? That would be the equivalent of me withdrawing $11,000 in 2019.

Am I understanding your suggestion correctly?

Only the yearly min. Repayment amt will be added to your 2019 income if you didn’t designate any RRSP repayment.

May 24th, 2020 10:54 pm

virgozero [OP]: Newbie; Feb 29, 2012; 75 posts; 21 upvotes; VANCOUVER

May 24th, 2020 10:54 pm

Right that is what I understand as well. I would not be able to reduce my HBP balance more than the yearly minimum.

Thanks everyone, I knew retroactive withdrawals are likely impossible.

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