RRSP withdrawals for non-residents

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chelavnzuo
Posts: 25
Joined: Wed Mar 22, 2017 1:08 pm

RRSP withdrawals for non-residents

Post by chelavnzuo »

According to this article:
https://www.greenbacktaxservices.com/bl ... treatment/

"Canadian Taxes on RRSP Withdrawals for Non-Residents
For non-residents of Canada, withholding is 25% for lump-sum RRSP withdrawals and 15% for periodic pension payments."

Questions:
1. What does "periodic pension payments" mean? If I have 100k in RRSP as a 30-year-old non-resident, and I withdraw say 70k this year and 30k next year, are both withdrawals considered as "lump-sum" or "periodic pension payments"?

2. If the Canadian brokerage has not updated my resident status in time and withholds the resident tax rate at 30%, is that a lengthy and complicated process to adjust it back?

Thanks
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Re: RRSP withdrawals for non-residents

Post by nelsona »

1. First off, NO withdrawals from RRSPs qualify for periodic. Only withdrawls from RRIFs qualify. To be periodic, the withdrawals must be less than 10% of the previous year-end value. So, roughly, the first 10K per year once you cpnvert to RRIF.

2. Yes, and you have been essentially putting your broker in an illegal position. Yoiu must fix this before converting the RRSP, and even if you decide not to convert.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
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