General RRSP Withdrawals
Since RRSPs are a tax-deferred account, you would not have previously paid tax on RRSPs contributions you made.
However, once you begin RRSPs withdrawals, you will be taxed on those withdrawals as income for the calendar year in which they were made.
There are, however, two additional programs in which you are allowed to withdraw from your RRSP for specific purposes:
Home Buyers Plan (HBP)
The Home Buyers Plan (HBP) allows you to withdraw funds from your RRSP to buy or build a qualifying home.
With HBP withdrawals: you have 15 years to repay withdrawals made from your RRSPs under the HBP starting two (2) years after the withdrawal.
In each tax year: re-pay one-fifteenth (1/15) of the total amount borrowed until your full amount owed is paid back to your RRSPs (via the Institution you withdrew from).
With the HBP: you have to buy or build a home by October 1 of the year after you make withdrawals from your RRSP.
Lifelong Learning Plan (LLP)
The Lifelong Learning Plan (LLP) allows you to withdraw funds from your RRSP to finance full-time training for you, your spouse, or your common-law partner.
With LLP withdrawals: you have up to 10 years to repay withdrawals made from your RRSPs under the LLP.
Typically, you must repay 10% of the total you withdrew each year until you have repaid the full amount. You do not have to pay any interest on the money you withdrew. Payments are considered contributions but, you will not be able to use the contribution to reduce your income for that year.
With the LLP: the student must have received a written offer to enroll by March of the year following withdrawals from your RRSP.