I'm helping a friend with a TFSA question.
He has a company TFSA plan that holds Sunlife mutual funds. He wants to move everything to his new TD Waterhouse TFSA.
However Sunlife says these are 'special' funds and cannot be transferred in-kind. They would have to be redeemed and transferred as cash.
Would the cash transfer be deemed a contribution by CRA? This would be a huge problem.
Or can cash be transferred "in-kind"?
I guess my question simplifies to: Can cash be transferred from one TFSA institution to another without penalty?