How do I transfer my RRSP to a different institution? - Investing Questions (2024)

FAQs

How do I transfer my RRSP to a different institution? - Investing Questions? ›

RRSPs are transferred via direct request to your financial institution. Typically, you'll open a new account and have that financial institution make the request.

Yes, you are free to transfer your RRSP to another financial institution at any time, however they may impose a fee between $50 to $150 for transferring funds out of your account. Some institutions will reimburse those fees when you transfer an account to them.

You can withdraw from your RRSP at any time and for any reason without penalty. RRSP withdrawals are considered taxable income, and your financial institution automatically withholds taxes when you take money out of your RRSP.

You can transfer money between RRSPs or between non-registered accounts and RRSP. There may be tax consequences depending on the transfer. Work with a financial advisor if you need support to manage your RRSP.

No, there isn't a way to transfer funds from an RRSP to a TFSA without paying tax. When you make a transfer, it's considered a withdrawal from your RRSP. The amount withdrawn minus withholding tax is deposited to your TFSA.

Registered Retirement Savings Plan (RRSPs) being an interest in registered plan are not subject to a deemed disposition upon emigration. An individual has the option to retain the RRSP even if they become a non-resident of Canada but will no longer accumulate RRSP contribution room.

Convert your RRSP to a RRIF

Once you convert to a RRIF, you can start receiving payments from it. The CRA sets the minimum amount you must withdraw based on your age and a percentage of the market value of the RRIF. All money withdrawn from a registered account is fully taxable in the year you withdrawn it.

By age 60, your retirement savings goal may be six to 11-times your salary. Ranges increase with age to account for a wide variety of incomes and situations. If you're not reaching these benchmarks, it's okay. You can get on track.

Who has the best RRSP rates in Canada? ›

IB allows funding of a registered account (both RSP and TFSA) in cash or in kind. IB offers the following funding choices: Fund a RSP/TFSA with cash. Transfer an RSP or TFSA account into IB using an ATON position transfer.

You can leave the funds in your RRSP and deduct part or all of it on your 2023 return (or a future return) up to your deduction limit. Be sure to show your contributions on Schedule 7 when you file your 2023 return so the funds will be available for 2023 or to carry forward for future years.

RELATED: Find out how much TFSA contribution room you have

Withdrawing from your RRSP to contribute to a TFSA is likely to make sense only if you're currently in the lowest tax bracket. In most provinces, that means a total income of no more than $35,000 to $45,000, including the amount you plan to withdraw.

Lower income

If you are in a low-income tax bracket (for example, if you are a student or are on maternity leave), saving in a TFSA may be more advantageous than saving in an RRSP. The RRSP tax savings are less significant, and you may be in a higher tax bracket when you make withdrawals.

Generally, you can transfer property between your first home savings accounts (FHSAs) or from your registered retirement savings plans (RRSPs) to your FHSAs without immediate tax consequences, as long as it is a direct transfer.

Regular RRSP, RRIF, or LIF

The RRSP, RRIF/LIF annual administration fee is $100 CDN. There are no administration fees for any registered account with a balance greater than $25,000 CDN (or Canadian equivalent).

For withdrawals up to $5,000: 10% (19% in Quebec) For withdrawals between $5,000 up to $15,000: 20% (24% in Quebec) For withdrawals over $15,000: 30% (29% in Quebec)

Depending on your financial institution they may charge a TFSA transfer fee of up to $200 for moving your account to another institution, which will be deducted from your balance upon transfer. Some financial institutions will cover those fees for you when you transfer an account to them.