# Moving US positions from TFSA to RRSP



## tendim (Nov 18, 2010)

G'day all.

I've been doing some research but can't seem to find anything definitive. Does anyone know how I can go about moving some US positions from my TFSA to my RRSP? When I first purchased them I was just getting into handling my own investments, and didn't realize that the RRSP is the better vehicle for US Equities due to there being no withholding tax.

I've read about wash-trading and how the CRA is clamping down on that, but I want to do a straight transfer and let the positions sit in the RRSP, potentially setting up a DRIP for those that offer it.

Any suggestions or pointers?

Thanks,
-10d


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## FrugalTrader (Oct 13, 2008)

I believe that no matter what you do, the transfer will be considered an RRSP contribution so make sure you have the contribution room. Perhaps if you setup a USD RRSP, you may be able to transfer directly into that account. Best to call the brokerage on those details.


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## tendim (Nov 18, 2010)

FrugalTrader said:


> I believe that no matter what you do, the transfer will be considered an RRSP contribution so make sure you have the contribution room. Perhaps if you setup a USD RRSP, you may be able to transfer directly into that account. Best to call the brokerage on those details.


Contribution room won't be an issue, I'll be retired before I go over my limit. Haha. 

I called my brokerage and they told me to liquidate the positions and just contribute cash -- counter intuitive as I want those positions! I'm kind of disappointed as this is the first time they haven't been very helpful.


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## Potato (Apr 3, 2009)

Like FT said, you'll need to have the RRSP room. The cleanest way to do it is probably to do an in-kind withdrawal from your TFSA to your non-registered account, then an in-kind contribution to your RRSP.

You'll get the TFSA room back in January.


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## Sampson (Apr 3, 2009)

The problem with in-kind contributions is that often cost more than commissions to do a "sell, then re-buy".

I've used the latter strategy when moving holdings (on paper) from one account to another. - cost $19.90 vs. $50 for an in-kind transfer.

You expose yourself to the volatility of the market, so I'd personally wait until the market settles a little before you do this. Losing a few $ on non-resident taxes can pale to losing 10% of the value of your holding in these markets.


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## Potato (Apr 3, 2009)

Sampson said:


> The problem with in-kind contributions is that often cost more than commissions to do a "sell, then re-buy".



Really? Who are you with? They're free at TD.


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## Assetologist (Apr 19, 2009)

*Usd rrsp*

I would make certain that you are able to have both a CDN and a USD portion in your RRSP account. Only a few brokerages have this option currently. If you do not move these US stocks into a USD RRSP the repeated bludgeoning of FX fees will cost you dearly.


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## Sampson (Apr 3, 2009)

Potato said:


> Really? Who are you with? They're free at TD.


RBC DI.

In-kind transfers from non-registered accounts to registered accounts are free, but not transfers among registered accounts. My guess is that there has to be some sort of filing to CRA, but it could just be a way to poach more money.


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## Sampson (Apr 3, 2009)

Assetologist said:


> If you do not move these US stocks into a USD RRSP the repeated bludgeoning of FX fees will cost you dearly.


But not as much as the non-resident withholding taxes, so probably still worth while even if the OPs brokerage does not allow holding USD in the RRSP.


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## CanadianCapitalist (Mar 31, 2009)

Potato said:


> The cleanest way to do it is probably to do an in-kind withdrawal from your TFSA to your non-registered account, then an in-kind contribution to your RRSP.
> 
> You'll get the TFSA room back in January.


I agree that this is the best way to do what OP wants to achieve even if costs more than a buy and sell transaction. The reason is that OPs TFSA assets are USD stocks. Selling them in a TFSA will force a currency conversion which is likely to be higher than the costs on an in-kind withdrawal. 

I've never done an in-kind withdrawal myself. Anyone have experience with how much they cost? I'm not clear if Sampson is referring to in-kind withdrawals or to swap transactions (which are now disallowed for all registered accounts).


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## Sampson (Apr 3, 2009)

Sorry guys, my mistake. I just looked up and down the RBC site and I don't know where I got the $50 

At the time, I think I might have been trying swap something in an RRSP to a TFSA or something like that - I can't see any listing for moving a holding from TFSA to RRSP.

I'd follow Potato's advice.


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## Soils4Peace (Mar 14, 2010)

*Buy QQQ*

Tendim, consider selling the dividend paying investments and buying a U.S. holding that pays little or no dividend. Like QQQ, the NASDAQ etf, which pays about 0.7% in dividends. 
EDIT: sorry, I missed that you want to keep your positions.


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