RRSP and withholding tax: Questions and answers

Read the video transcript pdf


Q. Can I transfer any or all my RRSP accounts to my spouse’s RRSP account?

A. Registered money cannot be transferred from one spouse to another while both parties are living.

Q. I need to withdraw money from my RRSP account. What is the minimum withholding tax rate applicable to this transaction?

A. Withholding tax rates are based on the gross amount of the withdrawal. The following mandatory minimum withholding tax rates are applicable:*

Withdrawal (net of DSC fees) Withholding tax rates Quebec withholding tax rates
$0.00—$5,000.00 10% 20% (5% Fed + 15% Provincial)
$5,000.01—$15,000.00 20% 25% (10% Fed +15% Provincial)
$15,000.01 and over 30% 30% (15% Fed + 15% Provincial)

* Mandatory minimum withholding tax rates for Canadian residents

Q. Is there a way to withdraw from my RRSP without paying tax penalties?

A. Yes, there are two options that allow you to withdraw from your RRSP without paying tax penalties for a given period. However, it is important that you do not include the withdrawals as income when you file your taxes.

  • Home Buyers Plan (HBP). If you are a first-time home buyer and plan to buy or build a place within one year of your withdrawal, you may withdraw up to $35,000 from your or your spouse’s RRSP and not incur withholding tax on your withdrawal, so long as you contribute your withdrawal back into your RRSP within 15 years.
  • Lifelong Learning Plan (LLP). If you have enrolled or received an offer from a qualifying educational institution before March of the following year, you may withdraw up to $20,000 from your or your spouse’s RRSP and not incur withholding tax on your withdrawal. There is no limit to how many times you may participate in the program, and the repayment period for this program is ten years after the fourth January from your first withdrawal.

For more information, go to this CRA website.

Q. How can I determine how much I can contribute to my RRSP account?

A. The amount you can contribute, or your “contribution room,” is determined by your earned income. Your yearly contribution room is based on 18% of your previous year’s income, less any pension adjustment. The annual dollar limit varies from year to year: it was $27,230 for 2020 and $27,830 for 2021. Thereafter, the limit will be indexed to average wage growth. Keep in mind that unused contribution room can be carried forward indefinitely to future years. CRA will advise you, by notice of assessment, of your contribution room.

For more information, visit the CRA website.


Q. I have over-contributed to my RRSP account and I am facing penalties from CRA. How can I correct this?

A. To correct this, you can complete a T3012A form and submit it to CRA. Upon approval, you can submit this form to Fidelity and withdraw the applicable amount, without incurring withholding taxes.

Q. I withdrew funds from my Fidelity RRSP account for the Home Buyers Plan. I am now required to commence repayments. Do I have to repay the Fidelity RRSP account from which I took the funds, or can I contribute to any one of my RRSP accounts?

A. Repayments under the Home Buyers Plan can be made to any of your RRSP accounts. It does not have to be to the account from which you made withdrawals. You cannot, however, contribute to a spousal account and have it deemed as a repayment.

Q. I have special permission from CRA that allows me to withdraw funds from my RRSP account without incurring withholding tax. Can Fidelity accommodate this?

A. Fidelity does not administer any special tax treatment for individual unitholders. Fidelity will apply standard tax rules based on CRA guidelines, and it is up to individual unitholders to apply for special tax consideration when they do their tax returns.

Q. I would like to apply for an RRSP loan. Can I apply for this loan through Fidelity?

A. RRSP loan applications must be initiated through the third-party company of your choice. Please consult your advisor if the RRSP loan you have selected allows investments from Fidelity.



Tax slips and statements

Q. Do I have access to 2020 tax year documents through fidelity.ca?

A. Yes: if you have a login profile, you will have access to all applicable tax documents since the inception of your account.

Q. I do not have a login profile on fidelity.ca and I need 2020 tax year duplicate documents. Where do I obtain these duplicate documents?

A. You can obtain 2020 tax year duplicate documents by contacting our Client Relations department at 1 800 263-4077. We are ready to support you from Monday to Friday, between the hours of 8:00 a.m. and 8:00 p.m. ET.

Q. I believe the information on my tax documents is incorrect. Where should I communicate my concerns?

A. You can contact our Client Relations department at 1 800 263-4077. We are ready to support you from Monday to Friday, between the hours of 8:00 a.m. and 8:00 p.m., ET.


Commissions, fees and expenses may be associated with investment funds. Read a fund’s prospectus or offering memorandum and speak to an advisor before investing.  Funds are not guaranteed, their values change frequently and investors may experience a gain or loss.  Past performance may not be repeated.

Read our privacy policy.  By using or logging in to this website, you consent to the use of cookies as described in our privacy policy.

This site is for persons in Canada only.  Mutual funds and ETFs sponsored by Fidelity Investments Canada ULC are only qualified for sale in the provinces and territories of Canada.


Close Search