# Transferring Stock from Sunlife to a TFSA options account at TD



## jtc (Oct 1, 2011)

Hello everyone,

I currently contribute 10% of my salary to company stock. On Dec 31 of each year, my company matches half of my contributions in an account setup at Sunlife. I was just wondering if its possible to transfer stock from the sunlife account to a TFSA trading account at TD? If so, how would the taxes work? Has anyone else done a similar thing?

Any help/comments would be greatly appreciated!


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## Jungle (Feb 17, 2010)

I think it goes like this...

You need to request the share certificate from CIBC Mellon or your company and give it to TD Waterhouse. They will deposit the shares into your TFSA. 

If this account is non reg, you will then have to declare capital gain or loss for your taxes. If this is RPP, you will have to pay income tax on the withdraw. 

PS I hope your company (and stock) is going to be ok.


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## Agrivar (Jun 15, 2010)

*Might have to stay the course*

Check with your company because often they require a you keep your investment with Sunlife (in your case) until you leave your company. I know my company matches RRSP payments but I must keep my $ invested with their choice until I leave.


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## Eclectic12 (Oct 20, 2010)

Jungle said:


> I think it goes like this...
> 
> You need to request the share certificate from CIBC Mellon or your company and give it to TD Waterhouse. They will deposit the shares into your TFSA.
> 
> ...


Maybe ... and maybe not.

Share certificates are usually required for Dividend Re-Investment Plans (DRIPs) or Share Purchase Plans (SPP), where the company has contracted with CIBC Mellon or Compushare or similar tranfer agent to run the plan.

Most accounts held by insurance companies such as SunLife, don't register the shares in individual's name and usually can have investments transferred either "in cash" (shares sold, money deposited to account) or "in kind" (as shares).

SunLife is holding the shares may mean it is as simple as filing out the transfer paperwork at TD and requesting a "transfer-in-kind" so that the shares are moved. 


A couple of things need to be figured out.

1) What sort of account is the SunLife account?

A non-registered (i.e. taxable) account with a transfer into a TFSA will generate a capital gain or loss, whether the transfer is shares or cash. Losses should be avoided as the loss can't be claimed.

http://www.taxtips.ca/personaltax/investing/transfersharestorrsp.htm


2) Are there restrictions of any kind? Restrictions on what the company contributed?

Most people I know who have been in a similar position have been required to hold the shares for a period of time before they can sell or transfer the shares. In other cases, only the company contributed part has a hold period.



3) Does SunLife has a fee for transfers? Will TD pay the fees?


Once the details are figured out, what makes sense to do can change.


Disclaimer: The only non-registered to TFSA transfer I've done was trust units I had bought and was within the same group of financial companies. So it was a phone call to request it, confirming the two accounts were updated correctly and reporting the capital gain on the appropriate tax return.

I've also transferred RRSPs from SunLife to a brokerage account. In that case, I went to brokerage, filled out the paperwork for an "in-kind" transfer and confirmed the numbers when it eventually happened.



Cheers


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## daddybigbucks (Jan 30, 2011)

Agrivar said:


> Check with your company because often they require a you keep your investment with Sunlife (in your case) until you leave your company. I know my company matches RRSP payments but I must keep my $ invested with their choice until I leave.


My wifes plan is the same way. I couldn't believe it when she told me that Sunlife is locking HER money in.

I can see Sunlife and the company saying if you want to withdraw, you can only withdrawl your 50% but to lock in the whole amount is ludicrious to me.

am i wrong?


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## Eclectic12 (Oct 20, 2010)

daddybigbucks said:


> My wifes plan is the same way. I couldn't believe it when she told me that Sunlife is locking HER money in.
> 
> I can see Sunlife and the company saying if you want to withdraw, you can only withdrawl your 50% but to lock in the whole amount is ludicrious to me.
> 
> am i wrong?


Hmmm ... what sort of a plan is it?

When I left a Defined Benefit pension plan, the part that was a combination of my contributions plus the employers that matched up to the benefit could be moved to any financial institution I chose - but had to remain locked-in.

This was gov't legislation - not the financial institution that dictated being locked in.


Cheers


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## daddybigbucks (Jan 30, 2011)

Eclectic12 said:


> This was gov't legislation - not the financial institution that dictated being locked in.
> 
> 
> Cheers


ahh yes, your right. I remember doing a bit of research and i found that.
The government made the financial companies do this so people wouldn't withdraw THEIR money out beforehand for any reason.

It boogles my mind that the government thinks they can make better decisions with our money then we can. 
I also think this was a way the government can protect itself from running the CPP dry.


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## Eclectic12 (Oct 20, 2010)

daddybigbucks said:


> ahh yes, your right. I remember doing a bit of research and i found that.
> The government made the financial companies do this so people wouldn't withdraw THEIR money out beforehand for any reason.
> 
> It boogles my mind that the government thinks they can make better decisions with our money then we can.
> I also think this was a way the government can protect itself from running the CPP dry.


Well it's not that strange ... the money from the company plus my DB contributions were aimed at retirement so I can understand why the gov't would want to make sure it stays for tax-sheltered for that purpose instead of being withdrawn on a whim.

Another factor is that only the combination of my and my employers fund that were required for the benefit that were locked. Since my employer had assumed a small investment growth as part of the DB plan, they'd collected more than was needed. The excess of the defined benefit was transferred to my RRSP and is available for withdrawal (subject to withholding taxes) at any point I choose.


Note that for those in a dire situation, one can apply to unlock the money.
http://www.moneysmartsblog.com/how-to-unlock-an-ontario-locked-in-retirement-account-lira-lrif/


Cheers


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## Cal (Jun 17, 2009)

Best thing is to check w your HR dept. I am sure they will be able to answer all of your questions.


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