Q&A With Gordon Pape: Income Tax And Your RRSP

Do I have to pay income tax on interest earned from my RRSP?

Q – I am holding a GIC in my RRSP. Do I have to pay income tax on the interest I get from it? I know that there are taxes on any money taken out of the RRSP, but what if you do not take money out? – George V.

A – No investment earnings are taxed inside an RRSP or RRIF. Tax is assessed only at the time money is withdrawn and then at your marginal rate. – G.P.

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