Can I use RRSP as part of my Settlement Fund for FSW?

[Kyle1804]

I want to ask if I can use that money in RRSP as part of the Settlement Fund for FSW once they start to draw again?
My company has a matching program so I imagine if I join their RRSP program, I can save up faster!

 

[scylla]

I want to ask if I can use that money in RRSP as part of the Settlement Fund for FSW once they start to draw again?
My company has a matching program so I imagine if I join their RRSP program, I can save up faster!

Sure, you can do that. But keep in mind that you will be taxed if you remove the money from your RRSP so you cannot count the entire amount.

 

[Naturgrl]

You not only are taxed but you pay a withholding fee when you withdraw. Eg. 10% taxed on withdrawals up to $5000. Also you can't withdraw if your RRSP is locked in. Ask your employer whether it is a locked in plan (LIRA). Some employers may do this.

 

[Kyle1804]

Can the RRSP just sit there while I use the bank statement (Manulife) to show that I have that much of the fund? Or should everything is in one place only?

 

[Naturgrl]

Can the RRSP just sit there while I use the bank statement (Manulife) to show that I have that much of the fund? Or should everything is in one place only?

I am not sure because RRSPs aren't funds in a savings/chequing bank account. Since the employer provides a match is your employer's portion not locked in (LIRA)? EG. you can't take out those funds.

 

[canuck78]

Can the RRSP just sit there while I use the bank statement (Manulife) to show that I have that much of the fund? Or should everything is in one place only?

Typically has to be accessible funds because they are to be used to settle in Canada.

 

[Kyle1804]

Thank you! I didn’t totally understand RRSP so thank y’all for explaning! I’ll save up on my own for the settlement fund!

 

[amir747]

Thank you! I didn’t totally understand RRSP so thank y’all for explaning! I’ll save up on my own for the settlement fund!

Were you able to use RRSP as your settlement fund?