Had a quick question that I'm sure someone on here knows the answer to...
Is it possible to withdraw from your RRSP and contribute the same amount (or more) within the same year without penalty? For example, here's my situation:
- plenty of unused RRSP room (like 25k+)
- i have $3500 and change in a RRSP (just a savings account, so barely collecting any interest)
- i want to withdraw all 3500 and use it to pay off the last bit of my student loan
- i would contribute $600 or more per month for the next 8 months into a different RRSP account (my questrade investor's account). Let's say in total it would be $5000 in contributions before Feb 28 2015
- 5000 - 3500 = $1500 net contribution
- i am thinking i would get some sort withdrawal tax receipt for -3500 from BMO, but then also a contribution receipt for $5000 from questrade
Am I allowed to do this without any "consequences"? Is there something I am missing?
Thanks in advance