group rrsp

[BeyondNewB]

I had a group rrsp with an employer.. now that I've I want to cash it out. Does it work the same as any other RRSP?

[Tik-Tok]

Originally posted by BeyondNewB
I had a group rrsp with an employer.. now that I've I want to cash it out. Does it work the same as any other RRSP?

Yes. The RRSP is in your name, but you still paid no taxes on it. So if you cash out, it will be considered income, and is taxable as such.

[sputnik]

Yes.

You will be taxed and penalized up the ass to cash it out.

Better off just moving it into your own RRSP account.

[Mibz]

Originally posted by sputnik
Yes.

You will be taxed and penalized up the ass to cash it out.

Better off just moving it into your own RRSP account.

[Grogador]

.

[krazykhoja]

As others have said now that you aren't with the employer you can cash it out but the taxes can potentially be quite high. Best option is to transfer it into one just in your name (depending on the value it might be a locked in RSP).

Any specific reason for wanting to cash it out?

If the value is under $5000 the tax charged at withdrawal is 10%
$5000-15000 = 20%
over $15000 = 30%