Withdrawal limits are limitations set on the withdrawal from a plan. RRSPs and TFSA’s do not have withdrawal limits, but if you take money out of the plans it can affect your future contribution limits. With RRSPs, you do not regain any of the contribution room for withdrawals taken out of the plan and you will have to pay a significant withholding amount to cover taxes on the amount added to your income. For TFSAs, you do regain the contribution room for any withdrawals, but you are not able to recontribute until the following tax year.
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