After You Leave: What Happens to Your RRSP and TFSA?

The rules while you are a non-resident, withholding on withdrawals

Scott Tang, CPAUpdated 2026-11-052026 rules5 min read

When you leave Canada, you can generally keep your RRSP and TFSA, and they aren't deemed to be sold when you leave. But the rules change: RRSP withdrawals are subject to non-resident withholding; you can't contribute to your TFSA any more, and your new country may not recognize it as tax-free. And if you haven't finished repaying the Home Buyers' Plan, you need to deal with it when you leave.

You can keep them

RRSPs, RRIFs and TFSAs can generally all be kept after you leave

25%

Usual withholding when a non-resident withdraws from an RRSP (a treaty may reduce it)

No more contributions

TFSA contributions made while you are a non-resident are penalized at 1% a month

60 days

An unpaid Home Buyers' Plan balance generally has to be repaid within 60 days after you become a non-resident

Your five accounts after you leave

Account	Can you keep it?	Can you still contribute?	Withdrawals as a non-resident
RRSP	✓	◐You can contribute if you have room, but the deduction is usually of no use	◐Usually 25% withheld, possibly reduced by a treaty; a section 217 election may be worth considering
RRIF	✓	✕Can't accept ordinary contributions the way an RRSP can	◐Usually 25% withheld, possibly reduced by a treaty; a section 217 election may be worth considering
TFSA	✓	✕Contributions are penalized at 1% a month	✓No Canadian tax; your new country may tax it
FHSA	✓	✓You can usually still contribute within your room and time limit; whether the deduction helps, and how your new country taxes it, are separate questions	◐Non-residents can't make a qualifying withdrawal to buy a home; taxable withdrawals are usually subject to 25% withholding (a treaty may reduce it)
RESP	✓	◐Contributions and grants only while the beneficiary is a resident	◐If the beneficiary is a non-resident when paid, the government grants (CESG, CLB) in an educational assistance payment (EAP) can't be paid; the investment income part is generally withheld at 25% (a treaty may reduce it)

RRSP

📦 Can you keep it?: ✓
➕ Can you still contribute?: ◐You can contribute if you have room, but the deduction is usually of no use
💸 Withdrawals: ◐Usually 25% withheld, possibly reduced by a treaty; a section 217 election may be worth considering

RRIF

📦 Can you keep it?: ✓
➕ Can you still contribute?: ✕Can't accept ordinary contributions the way an RRSP can
💸 Withdrawals: ◐Usually 25% withheld, possibly reduced by a treaty; a section 217 election may be worth considering

TFSA

📦 Can you keep it?: ✓
➕ Can you still contribute?: ✕Contributions are penalized at 1% a month
💸 Withdrawals: ✓No Canadian tax; your new country may tax it

FHSA

📦 Can you keep it?: ✓
➕ Can you still contribute?: ✓You can usually still contribute within your room and time limit; whether the deduction helps, and how your new country taxes it, are separate questions
💸 Withdrawals: ◐Non-residents can't make a qualifying withdrawal to buy a home; taxable withdrawals are usually subject to 25% withholding (a treaty may reduce it)

RESP

📦 Can you keep it?: ✓
➕ Can you still contribute?: ◐Contributions and grants only while the beneficiary is a resident
💸 Withdrawals: ◐If the beneficiary is a non-resident when paid, the government grants (CESG, CLB) in an educational assistance payment (EAP) can't be paid; the investment income part is generally withheld at 25% (a treaty may reduce it)

RRSP withdrawals: before or after you leave?

Withdraw in Canada before you leave

Included in your income at graduated rates

In a low-income year, the rate may be very low

The more you withdraw, the higher the rate

Suits a year of departure with modest income and a modest withdrawal

Withdraw as a non-resident after you leave

Usually 25% withheld (a treaty may reduce it)

No further Canadian return needed (unless you make a section 217 election)

Your new country may tax it as well

Suits large amounts that would be pushed into high tax brackets if withdrawn in Canada

Section 217 election. A non-resident can elect to have RRSP withdrawals, pensions and similar income recalculated at the graduated rates that apply to Canadian residents; if the result is less than the tax withheld, the difference can be refunded — this generally suits people most of whose worldwide income comes from Canada. The return is generally due by June 30 of the following year, and any balance owing by April 30.

Points to watch

Home Buyers' Plan and Lifelong Learning Plan
Any unpaid balance generally has to be repaid before you file your departure-year return or within 60 days after you become a non-resident, whichever is earlier; otherwise it is included in your income for the year you leave.
How your new country sees it
Some countries don't recognize the TFSA as tax-free, or tax the earnings inside an RRSP every year; ask a local adviser before you move.
Tell your financial institutions
Let your bank know you have become a non-resident; at some institutions, non-residents can't trade in their accounts.
TFSA room doesn't build up
Years in which you are a non-resident for the whole year don't add annual room; the years you leave and return, and room restored by withdrawals, are worked out separately.

How Sheng Qian CPA can help

Calculations before you leave
The tax under three options for your RRSP: withdraw before you leave, withdraw after you leave, or keep it.
Dealing with the Home Buyers' Plan
Any unpaid balance arranged before you leave.
Withdrawals after you leave and the section 217 election
Withholding on withdrawals, and whether to make a section 217 election. For prices, see "What Sheng Qian CPA Can Do for Newcomers and People Leaving Canada: Support on Arrival and on Departure" in this series.

Sources

Disclaimer

This article is general information only and is not tax advice. Everyone's situation is different; please consult a CPA about your specific arrangements, and a qualified local adviser about tax questions in your new country. Service fees are as set out in our written quote.