Will withdrawing funds under the HBP impact my RRSP contributions?

Possibly. Contributions made in the 90 days prior to your HBP withdrawal cannot be deducted from your income if the contribution is larger than your RRSP balance after the withdrawal. For example, if you contributed $10,000.00 to your RRSP within the 90 days preceding your HBP withdrawal and your RRSP account balance (after the withdrawal) was $6,000.00, then you will not be allowed to deduct $4,000.00 of your contribution. Careful consideration should be given to the timing of any contributions and HBP withdrawals.

In addition you may not be allowed to carry forward and deduct the $4,000.00 portion to future tax years. The contribution deduction may be lost.

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