Can I borrow from my RRSP?

Q – I am investigating purchasing a small business and have started to evaluate my finances and getting financing. Is it possible to borrow money from your personal or relatives’ self-directed RRSP without removing it from the RRSP account? – T.H.

A – No. If you borrow money from an RRSP, or even use the plan as loan collateral, you’re required by law to treat it as income and pay tax on the amount. However, shares of eligible small businesses may be held within a self-directed plan. Consult a tax advisor for details if this looks like an option for you. – G.P.