Can I withdraw from RRSPs to pay bills?

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Taking money from your RRSPs early to pay for debt has implications, including taxes, the loss of growth in the account, and more. What are the cons to withdrawing RRSP savings of $25,000 to pay off some unexpected bills I have incurred? 

Ahh, the unexpected bills.

Anonymous, I’ll give you my initial thoughts first, and then I’ll review the cons of withdrawing from your registered retirement savings plan (RRSP) to pay off unexpected bills.

Assuming you’ve incurred the debt yourself and you’re not desperate—and I mean really desperate—don’t pay your bills with an RRSP withdrawal.

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Original Article Source Credits: Moneysense, https://www.moneysense.ca

Article Written By: ALLAN NORMAN 

Original Article Posted on: APRIL 13, 2022

Link to Original Article: https://www.moneysense.ca/save/investing/rrsp/early-rrsp-withdraw-to-pay-debt