Victims of natural disasters should be able to dip into their RRSPs to rebuild without incurring a withdrawal penalty, say hundreds of people who signed a petition towards that end.
By early Monday morning about 400 people had signed the petition to the (Department of Finance) asking that the Income Tax Law be amended to so that “anyone who has experienced a natural disaster such as a tornado, fire, flood or earthquake can withdraw their RRSP without being subject to taxation, penalties or a maximum withdrawal amount, and that the repayment period shall be 15 to 20 years.”
The petition was begun by Gatineau resident Silvy Lemay and sponsored by local MP Steven MacKinnon, reports CBC. Lemay is reported saying to Radio-Canada she’s a flooding victim who felt she had no option but to use money from her RRSP on repairs to her home.
​”It is just common sense that people who are confronted with a disaster be able to use their own financial resources to get back on their feet,” she is quoted saying.
More: Change would establish a precedent.

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