If I cash in some RRSPs now, will it affect my 2003 tax return?

Jamie Golombek, vice-president of taxation and estate planning at AIM Trimark Investments, has the answer.

Jamie Golombek 5 February, 2004 | 2:00PM
Dear Expert:

If I cash in some RRSPs now, will it affect my 2003 income tax return?

Expert Answer:

No. An RRSP withdrawal is considered taxable income for the taxation year during which the withdrawal is made. Since we are now in the 2004 taxation year, any income from an RRSP will have to be reported on your 2004 tax return.

To find out how much an RRSP contribution may save you, try Morningstar's RRSP Calculator.

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Jamie Golombek

Jamie Golombek