# Any Discount Brokerage NOT charge for RRSP withdrawals



## OptsyEagle (Nov 29, 2009)

I was wondering if anyone knows of any discount brokerage that do not charge for withdrawals from an RRSP. Most seem to charge between $25 to $50 for each withdrawal. I would be interested if any do not charge these fees or if anyone knows of one that offers lower fees.

It may not seem like a big deal, and I doubt I would make many withdrawals but when I do I might want to split a withdrawal in two to reduce withholding taxes, but then these fees are doubled. They can get in the way of my planning, at times. Life would be easier if they were not there. Plus, I can be very cheap. lol.

Appreciate any thoughts.

Note: most withdrawal fees are called "partial de-registration fees" by brokers, but they are simply a withdrawal fee by another lesser known name.


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## redsgomarching (Mar 6, 2016)

The fees you are paying is for the work that the brokerage does in alerting CRA of your withdrawal and processing the administrative requirements. 

While im not sure which brokerages do not charge this fee I cannot really see many of them doing that because it is a cost that takes man power and time.


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## OptsyEagle (Nov 29, 2009)

Except that most are willing to do it for free with RRIFs and it is the same amount of work. No it is a fee grab and that is all it is. 

I don't have a problem with them trying and they do have to generate revenue somewhere, but I am just wondering if a competitor is doing RRSP withdrawals cheaper or for free.


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## AltaRed (Jun 8, 2009)

You must might need to google each discount brokerage in turn and see what their Fees and Commissions pages tell you. I am not aware of anyone that provides for free RRSP withdrawals. I think they are obliged (at least morally) to provide at least one free withdrawal for RRIFs since that is a regulatory/legal withdrawal requirement in the first place. They'd take a lot of heat otherwise.


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## redsgomarching (Mar 6, 2016)

OptsyEagle said:


> Except that most are willing to do it for free with RRIFs and it is the same amount of work. No it is a fee grab and that is all it is.
> 
> I don't have a problem with them trying and they do have to generate revenue somewhere, but I am just wondering if a competitor is doing RRSP withdrawals cheaper or for free.


As altared posted - I believe it is for that reason and secondly, a competitor is most likely going to charge as well (ive noticed in this line of business that competition doesnt work lower price but more or less sets standards for what services they CAN charge)


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## Spudd (Oct 11, 2011)

Is it an option to open an RRIF and transfer just enough money from the RRSP to the RRIF to cover what you want to withdraw, then withdraw it all? The bank would have to do even more paperwork in this scenario but it *feels* like it would work as it is technically within the lines.


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## Nerd Investor (Nov 3, 2015)

I'm fairly certain if you're a "Royal Circle" member that fees on RSP withdrawals are waived (I think most admin fees are waive actually). 
I believe you are eligible to be a member if your total account balance is $250K or more for 4 consecutive quarters. 

I would imagine some of the other brokers have similar programs.


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## AltaRed (Jun 8, 2009)

Which is why I say.... check each discount broker's fees and commissions. Spudd is right in that just enough RRSP money can be transferred to a RRIF to get a free withdrawal. Example: Transfer $2500 to a RRIF and then withdraw $2000 or so...keeping the RRIF open for 'rinse and repeat' next year.


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## OptsyEagle (Nov 29, 2009)

Nerd Investor said:


> I'm fairly certain if you're a "Royal Circle" member that fees on RSP withdrawals are waived (I think most admin fees are waive actually).
> I believe you are eligible to be a member if your total account balance is $250K or more for 4 consecutive quarters.
> 
> I would imagine some of the other brokers have similar programs.


It seems that you are correct. Thank you very much. This is the reason I asked the question on this forum. In reviewing the general information about RBC Direct Investing (along with about 10 other brokers) I did not notice this Royal Circle loop hole.

Thanks Nerd and everyone else for their help. It is always appreciated.


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