Financial institutions are required to withhold taxes on all cash withdrawals from an RRSP. If you withdraw $15,000, you will actually receive $12,000 because $3,000 ($15,000 x 20%) in taxes will be withheld. Since you must report this withdrawal as income when you file your income tax return, you will owe an additional $3,510 in taxes based on a 43.40% marginal tax rate.
