# TFSA cash transfer TD-->TDW



## DanFo (Apr 9, 2011)

Alright I read the governments TFSA rules on transfers..it said as long as it is a direct transfer there is no penalty...Just want some confirmation if It's alright for me to transfer cash from my TD TFSA to my newly established TDW TFSA online (seems like a direct transfer to me) without getting a penalty since my contributions are maxed out already....


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## NorthernRaven (Aug 4, 2010)

I wouldn't do this online, even if the system allows it. I'd suspect it would effectively be a withdrawal from the TD, and a deposit to the TDW, and you would run afoul of the TFSA "withdrawals don't regenerate contribution room until the next year" rules.

It's possible that TD's systems are smart enough to do the proper registered transfer between two TFSA accounts, but *don't* take a chance. Talk to your TD rep.

I've got a TDW TFSA, and the system won't let me use it as the source for a transfer, so it doesn't look like I can do online withdrawals (it can be the source, so online deposits probably work). Of course, I don't have a separate TD bank TFSA. Is WebBroker/EasyWeb letting you choose the TD TFSA as a transfer source?


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## DanFo (Apr 9, 2011)

Originally I set the TFSA TDW account up just so I could transfer into it in the new year (withdrawing some cash out of the TD TFSA before new year) but when transfering cash into my non registered account I seen I had the option to transfer from the TD TFSA -TDW TFSA's and it got me thinking So i looked at the gov's TFSA website.. and it just states as long as it's a direct transfer which this transaction seems to be.....With the current market I'm in no hurry anyhow just curious if anyone on here has done this before or knows for sure.


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## NorthernRaven (Aug 4, 2010)

If it were done as a qualifying transfer, it would be fine. But personally, even if the TD systems seemed set up to allow it, I certainly wouldn't trust that it would create all the proper TFSA transfer documentation behind the scenes, without checking with TD first.

TD can certainly do the transfer for you offline, and they can confirm whether it is possible online.


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## Argonaut (Dec 7, 2010)

I work for TD. Don't do it, it would risk being counted as an overcontribution and you would have an unnecessary mess to clean up. I would talk to Waterhouse and get one of their reps to do it for you. Same corporation, different division.


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## DanFo (Apr 9, 2011)

I'm in no hurry I'll just wait till Dec withdraw it out into my reg account then into the new TDW account along with the new contrib room when the new year rolls over


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## fersure (Apr 19, 2009)

I recently moved my TD RRSP mutual funds in kind from my TD Bank account to a new TD Waterhouse RRSP account. 
The principle is the same for transfering TFSAs (or RESPs).

TD has an internal form (called a TD Financial Group Registered Plans Internal Transfer Form) that needs to be completed in order to transfer cash or assets from TD Bank to TD Waterhouse. I strongly recommend that you go to either your TD Bank branch or TD Waterhouse and have them do the transfer in front of you.

As Argonaut indicates, if you simply withdraw cash from your TD Bank TFSA and deposit the cash in your TD Waterhouse TFSA within the same year, you'll be dinged with massive over contribution charges. You need this paperwork for the CRA.


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