Reference to the CFA’s Advocacy Update from October 27, 2022

At its recent Annual General Meeting, the Canadian Chamber of Commerce adopted a policy resolution, put forward by the CFA, that asks the federal government to create a program to allow RRSP withdrawals for the purchase of a new or existing business

The proposal would allow individuals to withdraw up to $100,000 from their RRSP/RESP accounts to make a down payment on the purchase of a new or existing business, without having to pay tax on the withdrawal.

The program would then require the individual to repay, on a non-deductible basis, the amount withdrawn over a period not exceeding 15 years, beginning the second calendar year following the calendar year in which the withdrawal was made. This is similar in structure to the First Time Home Buyers Plan. The United States allows individuals to borrow from their 401(k) accounts to help capitalize a new business endeavour by borrowing up to $50,000; or half of your vested balance.

The CFA is an active member of the Canadian Chambers Small Business Committee which put the resolution forward.