# In-kind transfer from TFSA to RRSP?



## balexis (Apr 4, 2009)

Is it allowed by CRA and TD to transfer e-series mutual fund units in-kind from a TFSA to an RRSP account?

I plan on DCA'ing units in a TFSA during 2012 (low-income year) and contribute the units back in-kind to RRSP during a future high-income year.

I guess worst case will be selling the units from TFSA, move cash out and use the cash to contribute to RRSP, but the time to settle the transaction will leave me out of the market for a few days, which I would prefer avoiding.

Thoughts?


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## eulogy (Oct 29, 2011)

I plan to do the same thing with my $US portion of e-series in my TFSA. I don't know the process exactly, but I assume that they would initiate a sell on the TFSA and a buy in the RRSP on the same day for the same price.


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## the-royal-mail (Dec 11, 2009)

I personally don't see a problem with being out of the market for a few days in these volatile times. Markets go up and down all the time. That said, I do think you should be able to do your in-kind transfer which should in fact trigger a tax refund as well. But as a downside the money will be less accessible in the RRSP than the TFSA which I think you're already aware of.


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## Four Pillars (Apr 5, 2009)

It's definitely allowed by the CRA and should be allowed by TD. It's a pretty standard process.

The only (minor) drawback I can think of, is that if you are transferring units (vs a dollar amount), you won't know the exact contribution amount until the next day.


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## CanadianCapitalist (Mar 31, 2009)

I don't see why you won't be able to do this. Withdraw your funds in-kind from your TFSA to a taxable account. Contribute the same funds in-kind to your RRSP. If you do this on the same day, there should be no tax implication because the ACB and disposition proceeds is exactly the same in your taxable account.


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## balexis (Apr 4, 2009)

Great, thanks for the replies!


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## OptsyEagle (Nov 29, 2009)

The other option is to use a line of credit. Sell the funds in the TFSA and buy the same amount in your RRSP, the same day, using money from your LOC. When the TFSA settles, withdraw the money and pay off the LOC. A good fall back if you have problems using your initial approach. Should only cost you 3 days interest.


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