ACCOUNT TRANSFER
How to Transfer Your RRSP or TFSA to a New Broker in Canada (Without Losing Money)
Moving your RRSP or TFSA? Use direct transfers to avoid tax and room issues. See steps, timelines, in-kind rules, and fee-rebate options.
Move It Right, Avoid Tax
Thinking about switching brokers, but worried about taxes or losing contribution room? The good news: transferring your RRSP or TFSA can be simple (and tax-free!) when done the right way.
By using a direct transfer between financial institutions, your registered plans stay fully intact. Plus, many brokers like Questrade even rebate transfer fees, helping you move your investments smoothly.
The Golden Rule
- Always use a direct transfer initiated by the receiving broker.
- For RRSPs, submit CRA Form T2033. For TFSAs, use an issuer-to-issuer request.
- Warning: Withdrawing funds yourself makes RRSP withdrawals taxable and reduces TFSA contribution room.
In-Kind vs. In-Cash
- In-Kind: Move investments as is (securities stay intact).
- In-Cash: Liquidate to cash before transferring.
Transfer RRSP to Another Broker—The Tax-Safe Way
Moving your RRSP to another financial institution doesn’t have to trigger tax or lose your tax-deferred growth, as long as you do it the right way.
Direct RRSP Transfer Basics
A direct RRSP transfer happens when one financial institution sends your registered plan assets straight to another on your behalf. According to the Government of Canada, this is not considered a withdrawal, so no tax is withheld.
What Not to Do
Never withdraw RRSP funds to your personal bank account with plans to “re-contribute” later. That triggers withholding tax immediately and adds the amount to your taxable income.
Transfer Your TFSA While Keeping Room Intact
To keep your tax-free growth and contribution room intact, it’s essential to transfer correctly.
Direct TFSA Transfers
A direct TFSA transfer moves your funds without affecting your contribution room. An issuer-to-issuer transfer is not considered a withdrawal. Start by opening your new TFSA account, then request a direct transfer through your new provider.
Indirect TFSA Transfers (Avoid This)
Avoid withdrawing from your TFSA to re-deposit elsewhere in the same year. This is an indirect transfer and can lead to over-contribution penalties, as withdrawn amounts aren't added back to your room until January 1 of the following year.
Step-by-Step Guide to Brokerage Transfers
- Open the Destination Account. Make sure the registration type (e.g., RRSP, TFSA) and name exactly match the original account.
- Start Transfer at Destination. Initiate the request from the receiving broker’s platform. For RRSPs, this generates Form T2033.
- Prep the Source Account. Settle trades, cancel open orders, and pause DRIPs.
- Track Status. Most cash-only transfers take a few days; in-kind transfers can take up to six weeks.
- Confirm Completion. Verify positions and cash balances match your statement.
Transfer Fees & Timelines
| Component | Details |
|---|---|
| Transfer-Out Fees | Most institutions charge a fee, but many brokers (like Questrade) offer rebates to cover it. |
| Timelines | Cash transfers: fast (days). In-kind transfers: 2-6 weeks depending on asset type. |
| Delays | Common culprits: Name mismatches, missing signatures, or open orders. |
Withdrawing Instead of Transferring (Why direct is better)
It may seem easier to withdraw your money and then re-deposit it, but for registered plans, that shortcut is costly.
- RRSP Withdrawals: Trigger immediate withholding tax and permanent loss of contribution room.
- TFSA Withdrawals: Withdrawn amounts aren't added back until Jan 1. Re-depositing early can cause penalties.
The Better Path: Always use a direct transfer. It preserves your tax advantages, contribution room, and investment momentum.
Open and Transfer A New Account Today
Moving your RRSP or TFSA to a new broker doesn’t have to be complicated. The easiest way to start is to request a transfer and let your new institution handle the process securely and tax-free.
If you want extra support, you can talk to a specialist to get personalized guidance before you begin. Review our fee-rebate terms to see how transfer-out fees can be reimbursed, and track your account activity to monitor each step until your funds arrive safely.
By taking these steps, you can move your registered savings efficiently, avoid unnecessary taxes or penalties, and ensure your investments continue growing without interruption.
