RRSP Withdrawing/contributing same year

[sprdave]

I was wondering if I was to withdraw from one RRSP and make contributions during the same year to another group rrsp plan, would it get filed based on the NET contributions (ie new contributions-withdrawals=contributions used)?

[AllWheelDrift]

I was wondering if I was to withdraw from one RRSP and make contributions during the same year to another group rrsp plan, would it get filed based on the NET contributions (ie new contributions-withdrawals=contributions used)?
No, when you withdraw, you lose the contribution room forever. Depending on the plans, you should/may be able to transfer from one plan to another rather than withdrawing & contributing.

[kaycee8877]

..not really part of the question but don't forget tax is withheld on the draw as well

[budfrogs]

You can do a transfer from 1 RRSP to another RRSP. That would not be taxed or penalized. (Just make sure you don't get the money! It goes from 1 institution to another.)

[reservoir_dogs]

No, when you withdraw, you lose the contribution room forever. Depending on the plans, you should/may be able to transfer from one plan to another rather than withdrawing & contributing.

What do you mean by losing the contribution room forever? So if I had to make an emergency withdraw of $5000, how will this affect the contribution room of my RRSP?

[sockboy]

You never get the space back. If you withdraw $5000 for any reason (other than under the HBP or learning plan) you can't just pay it back. Your contribution limit does not increase when you withdraw.

[reservoir_dogs]

^^

Gotcha, makes sense, thanks.

But this withdraw will have no effect in next years contribution right? I guess I was just confused by the use of "forever in: "lose the contribution room forever"

[sockboy]

Well you do loose that particular 5k of space FOREVER, it doesn't reappear the following year. You don't loose the ability to ever contribute ever again (that would be pretty harsh!), but you have to earn more space to make another contribution.