How to Transfer RRSP in Canada 2026: Step-by-Step (Avoid Withholding Tax)

Transferring your RRSP to a lower-cost or better-suited institution can be worth meaningfully more than it looks on the surface: moving $200,000 from a 2.0% MER mutual fund to a 0.20% ETF portfolio saves $3,600 a year in fees on that balance (1.8 percentage points × $200,000), or $72,000 over 20 years if the balance stayed flat, before counting the growth on the money saved. The mechanics of how you move it matter just as much as where you move it to.

This page covers moving an RRSP from one institution to another without triggering tax. If your plans are changing rather than just your institution, what happens if you cash out an RRSP early and the best time to convert to a RRIF may be more relevant; the rest of the RRSP guides are in the RRSP guide directory.

The One Rule That Matters: Direct Transfer, Never Withdraw

Moving an RRSP to another RRSP or to a RRIF in your own name is tax-free only as a direct transfer between institutions (Form T2033, started by the receiving institution): nothing is reported and no deduction is claimed, and it uses no contribution room; if the money is paid to you first, it is taxable income and tax is withheld. The money never passes through your hands. If you instead withdraw the funds and try to re-contribute them yourself, you trigger immediate withholding tax (10% to 30% outside Quebec, depending on the amount), the full withdrawal is added to your taxable income for the year, and re-contributing uses up contribution room you’ll never get back if you don’t have enough to cover the full amount. Withdrawing and re-contributing is not a substitute for a direct transfer when you change institutions.

In practice this means: you never initiate the transfer from your old institution. You open the new account first, then request the transfer from the new institution; they contact your old provider directly and the assets move without you touching them.

Cash vs. In-Kind: Which to Choose

You typically choose between transferring your actual holdings (in-kind) or liquidating first and transferring cash:

• In-kind keeps you invested throughout the transfer, avoids the cost and hassle of selling and rebuying, and works well if you’re happy with your current holdings or the new institution supports the same investments. The tradeoff is that if the receiving institution doesn’t support a particular holding (common with some proprietary mutual funds), it can’t be moved in-kind.
• Cash is the simpler choice if you’re changing strategy anyway, for example moving from high-fee mutual funds into low-cost ETFs, where you’d need to sell regardless. The tradeoff is a period out of the market while the cash is in transit. Also check older mutual fund holdings for a deferred sales charge (DSC): regulators banned new DSC sales from June 1, 2022, but funds bought earlier under a DSC option can still carry a redemption fee if sold before their schedule runs out.

If you’re not changing your investments, in-kind is usually the simpler choice. If you’re changing them anyway, transfer cash and buy the new investments once the funds land.

How Long It Takes

A direct transfer can take anywhere from about a week to several weeks. The biggest variable is outside your control: how quickly your old institution processes the request (paper-based processes are typically the slowest). If you’re transferring specifically to make a contribution before the deadline, start well ahead of it rather than in the final weeks.

Until the transfer settles, any new contributions can go to the new account once it’s open, rather than to the account being moved.

Fees, and Getting Them Reimbursed

Many institutions charge a transfer-out fee, deducted from the account before the balance moves (Questrade and Qtrade, for example, each charge $150 per account). Many receiving institutions will reimburse this fee for new accounts, particularly larger ones, but the specific thresholds, amounts, and which institutions currently offer this change often enough that it’s not worth relying on a number found online. Ask the new institution directly what they currently offer, get it in writing, and keep your fee receipt from the old institution to submit for reimbursement.

Special Cases

Spousal RRSP: the account must stay registered as a spousal RRSP at the new institution, since the attribution rules and the identity of the original contributor don’t change just because the account moved. See the spousal RRSP guide for how attribution works.

Locked-in accounts (LIRA): a LIRA can only move to another locked-in plan allowed under the same pension legislation (another LIRA, or a LIF or life annuity when you start income); moving it to a new institution does not unlock it or turn it into a regular RRSP. See the LIRA guide for the actual unlocking provisions.

Group RRSP: while you’re still employed by the sponsoring employer, many group plans restrict or prohibit transferring out. Once you leave that employer, the balance can typically transfer to a personal RRSP like any other. (Employer money held in a separate DPSP is different: only the vested part moves with you.)

Step by Step

1. Open the new RRSP account first, since you need somewhere for the funds to land before you can request the transfer.
2. Request the transfer at the new institution, not the old one; they’ll have you complete a transfer form (T2033) with your old account’s details.
3. Choose cash or in-kind based on whether you’re keeping your current investments.
4. Wait for the transfer to process: anywhere from about a week to several weeks, depending mostly on the sending institution.
5. Verify the transfer once complete: confirm all holdings and amounts match your old statement, check whether the old institution charged a transfer-out fee, and submit that fee for reimbursement if the new institution offers it.
6. Update your beneficiary designation at the new institution; this does not carry over automatically.

Related Resources

• RRSP Calculator
• RRSP Contribution Room Calculator
• RRSP Over-Contribution Guide
• RRSP Guide
• Best Online Brokers
• LIRA Guide Canada
• Spousal RRSP Guide