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During this year I deposited $5,000 to my RRSP account. Can I withdraw this money from my RRSP without penalty since it has not yet been claimed, or will this incur a tax or contribution room penalty?

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When you withdraw money from an RRSP account, it is added to your current year's taxable income. It does not matter what year the money was previously deposited in.

If you deposited money into an RRSP this year and withdrew the same amount of money, then the net effect is that you have $5000 RRSP contribution and $5000 extra income, and the two effects should cancel out. The only remaining effect is that you wasted $5000 of contribution room which can never be regained.

The exception to this rule is that after 90 days, you can withdraw funds from an RRSP for the HBP and LLP without adding to your taxable income.

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