# TD Waterhouse - TFSA/RRSP withdrawal



## noviceinvestor (Jan 7, 2013)

Hello, quick newb question... I was playing around with the WebBroker system, and I noticed that if I wanted to transfer money, I can do it from either my TD Canada Trust bank account or my non-registered TDW investment account to either of my registered accounts (TFSA or RRSP). However, if I wanted to withdraw funds from TFSA or RRSP, it does not give me that option when I choose "transfers". In other words, money can flow into the registered accounts but cannot flow out. Is it supposed to be like that? Or is this a financial institution money grabbing scheme to make life miserable to withdraw funds?


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## kaleb0 (Apr 26, 2011)

Recently had the same question, according to what I've read online you have to call them to transfer out of any 'registered' accounts so it's not an option on the site. Also according to some people online, there at least _used to_ be a fee attached to making withdraws of money, but someone said they changed the fee structure so that is no longer the case. However, there is apparently a penalty to completely close out the account. Call TDW for more information.


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## Eclectic12 (Oct 20, 2010)

It is providing protection to TDW from investor accidental mistakes. Then too, it allows a recording of the reminders (ex. withdrawing from RRSP early? There's a withholding tax that will be deducted, Withdrawing from a TFSA? Remember that the withdrawal amount does not become contribution room until *next* year).

Personally, I've been in a stupor & accidentally contributed to my TFSA using a different institution's online system. Fortunately, the amount was small so that it did not put me over my available contribution limit. So from my point of view, I like that I have to at minimum call (or visit a rep) to make the withdrawal happen.

Using the phone to call a rep is a larger barrier than using a web based system but once talking to a rep, it's been short & sweet to get the withdrawal from the TFSA. In fact, the first time I did the TFSA withdrawal, the rep helpfully pointed out that if I thought I needed more money before the end of the year it was better to withdraw everything in one shot to take advantage of the "one free withdrawal per year" fee schedule that was in effect at the time.


So compared with the paperwork to transfer an RRSP and it's delays, there's no money grabbing going on IMO.


Cheers


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## Retired Peasant (Apr 22, 2013)

kaleb0 said:


> Recently had the same question, according to what I've read online you have to call them to transfer out of any 'registered' accounts so it's not an option on the site. Also according to some people online, there at least _used to_ be a fee attached to making withdraws of money, but someone said they changed the fee structure so that is no longer the case. However, there is apparently a penalty to completely close out the account. Call TDW for more information.


There is still a fee to withdraw from RRSP - $45. There is no fee to withdraw from a RRIF, though. What some are doing is starting a RRIF, transferring some small portion from their RRSP; and withdrawing from the RRIF.


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