RRSP Withdrawal and effect on CPPD and LTD


#1

If you take money out of an RRSP, will your CPP Disability and LTD be reduced by the amount taken out? My policy states:

“If necessary, the amount of your benefit will be further reduced so that your total
income from all sources does not exceed 85% of your pre-disability gross earnings
(net earnings, if your benefit is non-taxable). All sources include those sources stated
above and any benefit you are entitled to receive from:
! any group, association or franchise plan
! any retirement or pension plan”


#2

I think that means they will deduct your RRSP.
Get a free consult about your situation:
https://resolutelegal.ca/free-consultation/


#3

Second thought, you’re not “entitled”, you “choose”.
Ask your insurance company.
It won’t affect CPP-D.