If you hold assets in a registered account (like an RRSP or RRIF for example) and wish to withdraw the funds or move them into a non-registered account, you can request to deregister the account. To de-register the account you can either request to receive the funds in-cash or transfer them in-kind to a non-registered account. In both cases the cash or funds will be subject to withholding taxes and fees, except if a RRIF withdrawal is part of the minimum payment.
How much withholding tax will be applied to my gross withdrawal?
Withholding tax (WHT) and fees are deducted from the gross withdrawal amount as follows:
- 10% (5% in Quebec) on amounts up to $5000
- 20% (10% in Quebec) on amounts over $5000 up to and including $15,000
- 30% (15% in Quebec) on amounts over $15,000
For example, a gross de-registration of $5000 would result in 10% WHT of $500, less the $50 plus tax partial deregistration fee to provide you a final deposit to you of $4450, less applicable tax on $50 for your province of residence.
How much withholding tax will be applied to my net withdrawal or in-kind withdrawal?
Withholding tax on net withdrawals or for withdrawals in-kind are based on the grossed-up value of the de-registration. For example, a net de-registration of $5000 (you want to receive $5000; or have $5000 in a security you wish to withdraw) would result in 20% WHT plus the $50 partial deregistration fee and tax. Specifically: $5000 / 0.8 = $6250 + ($50 + tax).
You can submit a de-registration request either online or via the RSP Deregistration Form.
How do I request de-registration online?
- Log into your Qtrade account on a browser
- Click “Accounts” from the top menu bar
- Select “Transfer Funds” from the drop-down menu
- Select your preferred option (based on the account type) from the “Withdraw Registered Funds” box.
On the next page you can select from the drop-down menus which registered account you wish to move funds from, and which non-registered you wish to move the funds to. Then select whether this is a partial withdrawal or full withdrawal and the amount to withdrawal. Please note if you have recently sold a holding that has not settled, this may take a little more time, but we will process your request upon settlement.
How do I request de-registration via e-mail or mail?
- Download the RSP Deregistration Form
- Fill out and sign the form
- Send the completed form to
- firstname.lastname@example.org; or,
- Mail to: Qtrade Direct Investing, 700-1111 West Georgia Street. Vancouver, BC. Canada V6E 4T6