I contributed some amount to my RDSP and government matched it 1:3. Now I’d like to withdraw money I contributed. Will I be able to do that?
Has it been more than 10 years? If under 10 years I think you would have to pay the gov back
You have to pay some but not all of it.
Call any bank or Service Canada.
I just went to the bank. You have to fill a withdrawal form and give it to them. Not sure what happens next.
The bank should have said what happens next but they probably don’t know.
In 2013, the 10 yrs rule was relaxed in favour of the proportional repayment rule. (https://www.canada.ca/en/employment-social-development/programs/disability/savings/issuers/infocapsules/aha.html)
Meaning, for every $1 withdrawed before 10 years from the last Government’s contribution, you have to return portion of the grant. Pass the 10 years government’s last contribution, you do not return anything.
Note: This is the rule in general. Exception exist when your total contribution is greater than the Government contribution and when you have less than 5 yrs to live. I am not an expert so I will not get into those exceptions.
*To continue with our example, Robert contributed $1,000/year until 2010 and received the government’s contributions of $3,000 each time. As a result, if he makes a $4,000 withdrawal in 2019, the plan administrator will have to withhold $3,000, the lesser of three times the amount withdrawn or all government contributions. To prevent proportional repayment from applying, he would have to wait until 2020 to not repay the government’s contributions.
Note: Robert has to make his first withdrawall by age 60 at the lastest regardless of holdback amount*
Hope this help!