Can I transfer my RRSP to another financial institution?

Yes, you can transfer your RRSP to any registered RRSP at another institution. Request a direct transfer (Form T2033) to avoid withholding tax and contribution room issues. Never withdraw and re-contribute.

Is there tax on RRSP transfer between institutions?

No tax if done as a direct transfer using Form T2033. If you withdraw instead of transfer, the withdrawal is taxable income and withholding tax applies. Always use direct transfer.

How long does an RRSP transfer take?

Direct RRSP transfers typically take 2-6 weeks depending on the institutions. December and RRSP season (January-March) can be slower. Allow extra time before RRSP deadline.

Will my brokerage reimburse the RRSP transfer fee?

Most online brokerages reimburse transfer fees for accounts over a certain size. Wealthsimple covers transfer fees for accounts of $5,000+, Questrade reimburses up to $150 for accounts over $25,000, and most big banks reimburse for larger transfers. Always ask the receiving institution before initiating.

Can I transfer my RRSP to a TFSA?

Not directly. You must withdraw from the RRSP (triggering full income tax and withholding tax), then contribute to the TFSA using available room. This is sometimes strategic in very low-income years (e.g., parental leave, sabbatical) when your marginal tax rate is low, but it permanently eliminates the RRSP contribution room.

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

Transferring your RRSP to a lower-cost institution can save you tens of thousands of dollars over your investment lifetime. Moving $200,000 from a 2.0% MER mutual fund to a 0.20% ETF portfolio saves $3,600 per year — that’s $72,000 over 20 years, not counting compound growth on the savings. The critical rule: always use a direct transfer (Form T2033). If you withdraw and re-contribute, the full amount becomes taxable income and uses your RRSP contribution room. Most transfers take 2–6 weeks, and many discount brokerages will reimburse transfer fees.

If you are moving an RRSP because your strategy is changing rather than just your institution, also read before you withdraw from your RRSP, what happens if you cash out an RRSP early, how much RRSP room you have, RRSP vs non-registered investing, and whether it is worth keeping your RRSP in retirement.

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

This is the single most important section. A direct transfer (Form T2033) moves your RRSP between institutions with zero tax consequences and no impact on your contribution room. If you instead withdraw the money and re-contribute it, you’ll face immediate withholding tax (10–30%), the full amount gets added to your taxable income for the year, and the re-contribution uses your contribution room — potentially triggering an over-contribution penalty. There is no scenario where withdrawing and re-contributing is the right move.

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

Form T2033

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

The Bottom Line

Always use a direct transfer (T2033) to move your RRSP. Initiate the transfer at the new institution, choose cash transfer if you’re switching from mutual funds to ETFs, and ask the new provider to reimburse any transfer-out fees. The fee savings from moving to a low-cost provider will compound for decades.

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	☐