The gross amount that you withdraw from your RRSP is included in your income for the year.
Your bank is mandated to withhold tax on RRSP withdrawals by Canada Revenue Agency (CRA), and the withholding rates vary according to the amount of the withdrawal. The tax that was withheld may not always be enough to account for the tax you owe at your tax bracket. You may have to pay more tax on the withdrawal when you include the withdrawal on your income tax and benefit return for that year.
Thank you for choosing TurboTax.
