Home Buyer Plan RRSP Withdrawal Limit Increase!

SUMMARY

The 2009 Federal Budget introduced the following changes affecting Retirement Savings Plans (RSP):

• The Home Buyers’ Plan (HBP) maximum withdrawal limit has been increased to $25,000 from $20,000 for withdrawals made after January 27, 2009.

ADDITIONAL INFORMATION

How much can I withdraw from my RRSP under the HBP?

For withdrawals made after January 27, 2009, the maximum amount that you can withdraw from your RRSP to purchase or build a qualifying home without having to pay tax on the withdrawal is $25,000.

If I withdrew $20,000 from my RRSP under the HBP after December 31, 2008, but on or before January 27, 2009, can I withdraw an additional $5,000 from my RRSP?

Yes, you can withdraw additional funds, as long as the total of all your withdrawals does not exceed the new maximum amount of $25,000. However, under existing requirements, neither you nor your spouse or common-law partner can own the qualifying home for more than 30 days before making the final withdrawal.