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TFSA or RRSP? You can move holdings from one to another, but they become taxable along the way.

Dear Nancy Woods,

Can a person transfer a security from his RRSP to his TFSA without having to sell it first and then transfer in the cash?

Thanks, Bert

Dear Bert,

Yes, you can, but the de-registration from your RRSP would be subject to a withholding tax that has to be paid in cash at the time of the withdrawal. Remember that the gross amount that you withdraw is taxable as income. You can then transfer the shares to a non-registered investment account and contribute the same shares to the TFSA. You may have to set up the non-registered account temporarily if you don't already have one.


Nancy Woods is an associate portfolio manager and investment adviser with RBC Dominion Securities Inc. Visit her website or send an email request to . You can send your questions to as well.