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How Long Does an RRSP Withdrawal Take in Canada?

Updated

Whether you’re taking an early withdrawal or drawing on your RRSP in retirement, timing matters. Here’s what to expect from start to finish.

How Quickly RRSP Withdrawals Are Processed

Most RRSP withdrawals are available within 1 to 5 business days of your request. Online and phone-initiated withdrawals tend to process faster than paper forms submitted in person.

Request MethodTypical Processing Time
Online (bank app or brokerage portal)1–3 business days
Phone request1–3 business days
In-person at branch2–5 business days
Paper withdrawal form3–7 business days

The funds are deposited to your linked bank account (or issued as a cheque) with withholding tax already deducted.

Withholding Tax: What’s Taken Before You Get the Money

Your financial institution is legally required to withhold income tax before releasing your RRSP funds. This is not optional.

Withholding Tax Rates (Outside Quebec)

Withdrawal AmountFederal Withholding Rate
Up to $5,00010%
$5,001 to $15,00020%
Over $15,00030%

In Quebec

Quebec applies an additional provincial withholding on top of the federal rate. The combined effective rate is higher — consult your institution or a tax professional for the exact combined rate for your amount.

Important: Withholding tax is not your final tax bill. It is a prepayment. The full RRSP withdrawal amount is included in your taxable income for the year, and you settle the actual amount owing (or get a refund) when you file your tax return. If you are in a high tax bracket, you may owe more than was withheld.

When Withdrawals Take Longer

GICs and Term Deposits

If your RRSP holds GICs or term deposits that have not yet matured, you generally cannot withdraw from them early without a penalty. You must either:

  • Wait until the maturity date
  • Break the GIC early (most institutions allow this, but you may lose some or all of the accumulated interest)

Check your specific GIC terms before requesting a withdrawal.

Mutual Funds and ETFs

Mutual fund redemptions typically settle in 1–2 business days after you submit the redemption request. ETF sales settle in one business day (T+1 settlement). The proceeds then need to be transferred out of your RRSP, which adds another 1–2 days.

Large or Unusual Withdrawals

Financial institutions may apply extra scrutiny or require additional documentation for very large withdrawals or for accounts with beneficiary designations. This can add 1–3 business days.

Special Withdrawal Programs

Home Buyers’ Plan (HBP)

First-time home buyers can withdraw up to $60,000 from their RRSP under the HBP without withholding tax, provided they submit the T1036 form to their RRSP issuer before the withdrawal. Processing time is the same (1–5 business days), but the T1036 must be in hand first.

Repayment begins the second year after the withdrawal year, at a minimum of 1/15th of the total amount per year.

Lifelong Learning Plan (LLP)

Students enrolled in qualifying educational programs can withdraw up to $10,000 per year (up to $20,000 lifetime) under the LLP. Similar to the HBP, no withholding tax applies, but you must file the RC96 form with your issuer first.

After Your Withdrawal: Tax Reporting

  • Your financial institution issues a T4RSP slip by the end of February following the calendar year of your withdrawal
  • The gross withdrawal amount is added to your taxable income for the year it was withdrawn
  • The withholding tax appears as a tax credit on your return — you may owe more or receive a refund depending on your total income

Tip: If you’re planning a large RRSP withdrawal in a year when your income is otherwise low (e.g., early retirement, sabbatical), the effective tax rate will be lower. Timing withdrawals strategically can save thousands.