Why Transfer Your RRSP?
Common Reasons
| Reason |
Benefit |
| Lower fees |
Save 1%+ annually |
| Better investment options |
More choices |
| Consolidation |
Simpler management |
| Better service |
Interface, support |
| Better interest rates |
For GICs |
Fee Savings Example
| Current MER |
New MER |
Annual Savings on $200K |
| 2.0% |
0.5% |
$3,000 |
| 1.5% |
0.2% |
$2,600 |
| 1.0% |
0.2% |
$1,600 |
Over 20 years: Tens of thousands in savings.
The Right Way to Transfer
Critical Rule
| Method |
Result |
| Direct transfer (T2033) |
✅ No tax, no room impact |
| Withdraw and re-contribute |
❌ Taxable, uses room |
Always use direct transfer.
What Happens If You Withdraw
| Action |
Consequence |
| Withdraw $50,000 |
Taxable income |
| Withholding tax |
20-30% kept by institution |
| Re-contribute |
Uses contribution room |
| No room? |
Over-contribution penalty |
How Direct Transfers Work
The Process
| Step |
What Happens |
| 1 |
Complete T2033 at new institution |
| 2 |
New institution contacts old |
| 3 |
Old institution transfers assets |
| 4 |
New institution receives |
| 5 |
Investments set up |
| 6 |
No tax, no forms to file |
| Purpose | Direct RRSP to RRSP transfer |
| Who completes | You, with new institution |
| Filed with | Between institutions |
| Tax impact | None |
Step-by-Step Transfer Process
Step 1: Choose New Institution
| Option |
Best For |
| Major bank |
Full service, branches |
| Discount broker |
Self-directed, low fees |
| Robo-advisor |
Managed, hands-off |
| Credit union |
Local service |
Step 2: Open New RRSP
| Action |
Details |
| Apply online or in-branch |
New RRSP account |
| Provide ID |
Government ID required |
| Specify account type |
Individual, spousal, etc. |
Step 3: Initiate Transfer
| At New Institution |
Provide |
| Transfer request form |
Complete and sign |
| Old account details |
Account number, institution |
| Transfer type |
Full or partial |
| In-kind or cash |
How to transfer |
Step 4: Wait for Completion
| Timeline |
Expectation |
| Standard |
2-6 weeks |
| RRSP season |
Longer |
| December |
Can be delayed |
| In-kind |
May take longer |
Step 5: Verify and Set Up
| Action |
Purpose |
| Verify all holdings |
Complete transfer |
| Check fees charged |
By old institution |
| Set up investments |
If cash transfer |
| Request fee reimbursement |
If applicable |
Transfer Fees
Typical Fees
| Institution Type |
Transfer Out Fee |
| Major banks |
$50-$150 |
| Discount brokers |
$50-$100 |
| Some providers |
Free |
Fee Reimbursement
| New Institution |
Reimbursement |
| Questrade |
Up to $150 |
| Wealthsimple |
Often available |
| NBDB |
May reimburse |
| Ask first |
Before deciding |
Getting Reimbursed
| Step |
Action |
| 1 |
Ask new institution policy |
| 2 |
Complete transfer |
| 3 |
Get fee receipt |
| 4 |
Submit to new institution |
| 5 |
Receive reimbursement |
Cash vs. In-Kind Transfer
Cash Transfer
| Process |
Details |
| Old holdings sold |
At old institution |
| Cash transferred |
To new account |
| You buy new |
At new institution |
| Pros |
Cons |
| Clean start |
Out of market during transfer |
| Any new investments |
May miss gains |
| Simpler |
Selling costs (minimal) |
In-Kind Transfer
| Process |
Details |
| Investments stay same |
Move as-is |
| No selling |
Keep positions |
| Rebalance later |
If desired |
| Pros |
Cons |
| Stay invested |
Both must offer same holdings |
| No transaction costs |
May take longer |
| Keep strategy |
Stuck with old investments |
Which to Choose
| Situation |
Recommendation |
| Switching to index ETFs |
Cash (buy new) |
| Happy with holdings |
In-kind |
| Mutual funds to ETFs |
Cash (must sell anyway) |
| ETFs to ETFs |
In-kind if same |
Partial vs. Full Transfers
Full Transfer
| Feature |
Details |
| Everything moves |
All RRSP holdings |
| Old account |
Usually closes |
| Simpler |
One transaction |
Partial Transfer
| Feature |
Details |
| Specify what moves |
Some holdings |
| Old account |
Stays open |
| More complex |
Multiple pieces |
When Partial Makes Sense
| Situation |
Reason |
| GIC not matured |
Transfer rest now |
| Group RRSP |
Can’t fully transfer |
| Testing new broker |
Try before full move |
Special RRSP Situations
Spousal RRSP Transfer
| Rule |
Details |
| Must stay spousal |
At new institution |
| Attribution rules |
Still apply |
| Contributor |
Stays the same |
Locked-In RRSP
| Type |
Can Transfer To |
| LIRA |
Another LIRA |
| Locked-in RRSP |
Same type at new institution |
| Cannot unlock |
Through transfer |
Group RRSP
| Situation |
Options |
| Still employed |
Usually can’t transfer |
| Left employer |
Transfer to personal RRSP |
| Check plan rules |
May have restrictions |
Timing Considerations
Best Times to Transfer
| Period |
Recommendation |
| April-November |
Faster processing |
| After RRSP deadline |
Less busy |
| Mid-year |
Normal timelines |
Avoid If Possible
| Period |
Why |
| December |
Year-end processing |
| January-March |
RRSP season busy |
| Around contribution deadline |
Delays risk |
If Contributing Soon
| Timing |
Action |
| Before deadline |
Contribute at old, then transfer |
| After deadline |
Transfer, then contribute |
| During transfer |
Don’t contribute to old |
During the Transfer
What to Expect
| Phase |
Status |
| Week 1 |
Request processed |
| Week 2-3 |
In transit |
| Week 3-4 |
Received, settling |
| Week 4+ |
Available to manage |
What You Cannot Do
| During Transfer |
Restricted |
| Trade at old institution |
Usually frozen |
| Contribute to old |
Don’t |
| Access money |
Locked |
After Transfer Completes
Verification Checklist
| Check |
Action |
| All holdings transferred |
Compare to old statement |
| Amounts correct |
Verify values |
| Account type correct |
RRSP, Spousal, etc. |
| Beneficiaries |
Update at new institution |
Set Up New Account
| Action |
Purpose |
| Choose investments |
If cash transfer |
| Set up contributions |
For future |
| Update DRIP settings |
If desired |
| Link bank account |
For deposits |
Common Mistakes
Transfer Errors
| Mistake |
Consequence |
| Withdrawing instead of transferring |
Tax + room impact |
| Not using T2033 |
May be treated as withdrawal |
| Missing deadline |
Can’t claim contribution |
Planning Errors
| Mistake |
Solution |
| Transferring during RRSP season |
Start early |
| Not checking new fees |
Research first |
| Forgetting about GICs |
Plan around maturity |
| Not asking about reimbursement |
Always ask |
Transfer Checklist
Before
| Task |
Done |
| Compare new institution options |
☐ |
| Document current holdings |
☐ |
| Check transfer fees |
☐ |
| Ask about reimbursement |
☐ |
| Open new RRSP |
☐ |
| Decide cash vs. in-kind |
☐ |
During
| Task |
Done |
| Complete transfer form |
☐ |
| Submit to new institution |
☐ |
| Keep confirmation |
☐ |
| Track progress |
☐ |
After
| Task |
Done |
| Verify all holdings |
☐ |
| Check for transfer fees |
☐ |
| Request reimbursement |
☐ |
| Set up investments |
☐ |
| Update beneficiaries |
☐ |
| Confirm old account closed |
☐ |