There are only three ways to get funds from your RRSP without paying tax on 100 percent of the withdrawal: the HBP,LLP and RRIF.

Question

Quizplus · Accepted Answer

The Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP) allow for tax-free withdrawals from an RRSP, but withdrawals from a Registered Retirement Income Fund (RRIF) are taxable. However, the statement overlooks the fact that RRIF withdrawals are indeed subject to taxation, making the assertion that there are only three ways to withdraw funds tax-free incorrect.

There Are Only Three Ways to Get Funds from Your