Understanding the Basics - Servus Credit Union

Applying for Your Home Buyers’ WithdrawalYou apply by completing CRA form T1036 with yourRRSP issuer. No withholding tax will be deducted froma qualifying withdrawal.Other Withdrawal Information• you can withdraw from any number of RRSPs, withdifferent institutions, as long as your total withdrawalsdo not exceed $25,000;• all withdrawals must be within the same calendar year,except if you make a withdrawal within a calendar year,one or more additional withdrawals requested by youwithin that year can be received in the January following;• withdrawals can be made up to 30 days after thecompletion of a purchase;• withdrawals by your spouse from a spousal plan willnot be attributed to you; any amount not repaid by yourspouse will be taxed in your spouse’s name;• it is the financial institution’s decision whether it will allowearly withdrawals from non-redeemable investments;• a withdrawal is not permitted from a Locked-In RRSP,LIRA or RLSP (see page 21);• amounts withdrawn will be reported on a T4RSPin the year withdrawn.RepaymentsYou are required to repay (to any RRSP) the amountwithdrawn, without interest, in equal payments over a15 year period commencing in the second calendar yearfollowing the year of your withdrawal(s). Repaymentsmade in the first 60 days following a calendar year canbe treated as if they were made within the calendaryear. On your income tax return, you will designate whatportion of your total RRSP contributions are repaymentsunder the Plan, and therefore not deductible from income.In Saskatchewan, a repayment may be made to theSaskatchewan Pension Plan (SPP); however, the maximumcontribution limit is $2,500/year.If you repay less than the specified amount in a year, youwill be taxed in that year on the portion you did not repay.UNDERSTANDING ALL THE BASICS 19