Q&A With Gordon Pape: The Tax Implications on Selling Mutual Funds

Gordon Pape advises a reader who’s looking to sell some of his RRSP mutual funds.

Q – I’m in my mid-50s and interested in selling some of my RRSP mutual funds. I’ve had them for at least 10 years. So, I think I have had them long enough to not get charged a penalty fee for selling them within a couple of years. Do they get taxed the same rate as if I had capital gains from selling stocks in a company? – Randy W.

A – Profits aren’t taxed at all within an RRSP. You only pay tax on any money you withdraw from the plan (or from a subsequent RRIF). Those withdrawals are taxed at your marginal rate at the time. – G.P.