How to Transfer Your RRSP or TFSA Between Institutions Without Penalty

Direct Transfer vs. Withdrawal: A Critical Distinction

When you withdraw money from an RRSP and deposit it elsewhere, the CRA treats it as a taxable withdrawal. Your institution withholds tax at source (typically 10–30% depending on the amount), and you permanently lose the contribution room you originally used. For a TFSA, there is no immediate withholding tax on a withdrawal, but the room is only restored on January 1 of the following year. Re-contributing in the same calendar year risks an over-contribution penalty of 1% per month on the excess.

A direct transfer, by contrast, moves assets vault-to-vault: the money never passes through your hands, and the CRA does not treat it as a withdrawal. No withholding tax, no lost room.

The Official Forms: T2033, T2151, and TFSA Transfer Forms

For any registered transfer, it is always the receiving institution that drives the process. You do not need to contact your old broker first — you fill out the paperwork at the new one, and they send the request to the transferring institution on your behalf.

• Form T2033 — Direct transfer between RRSPs, including spousal RRSP transfers.
• Form T2151 — Direct transfer for locked-in funds (LIRA, LRSP, LIF, RLIF, PRIF).
• Broker's internal transfer form — For TFSAs, most institutions use their own registered account transfer form, which captures the same information.

In all cases, you will need your account number at the old institution, the account type, and a decision on whether to transfer in kind or in cash.

In-Kind vs. In-Cash: Which Should You Choose?

You have two options when transferring:

• In cash: your holdings are liquidated before the transfer, and the cash balance is sent to the new broker. You are out of the market for several days and lose your current positions.
• In kind: your securities (stocks, ETFs, bonds) move as-is without being sold. You stay invested throughout — but if the receiving broker does not support certain securities (e.g., foreign-listed stocks not carried on their platform), those positions will still need to be liquidated.

Transferring in kind is often preferable to avoid missing market days, but confirm that all your holdings are accepted at the new broker first. Most Canadian online brokers — see our list of Canadian brokers — support Canadian and U.S.-listed stocks and ETFs without issue.

Transfer-Out Fees and Reimbursement

The transferring institution typically charges transfer-out fees to cover its administrative costs. These vary by institution but generally fall in the range of roughly $100–$150 per account. Some banks charge separate fees for each account type being transferred.

The good news: many discount brokers reimburse these fees to attract new clients, often up to a specified cap and upon submission of your fee statement as proof. Before initiating a transfer, ask your new broker in writing whether they offer a reimbursement, and note any conditions — minimum transfer amount, deadline to submit proof, and whether the reimbursement covers all account types.

Typical Timelines and Partial Transfers

A full transfer between two major Canadian institutions typically takes 2 to 6 weeks. Common delays include positions that need to be liquidated, missing information on the form, or slow processing by the old broker. Some institutions still require an original signature on the transfer form, which adds time if everything must go by mail.

You can also request a partial transfer: specify which securities or what dollar amount you want moved, leaving the rest at the old broker. This is useful if you want to consolidate accounts gradually or if certain holdings (e.g., a GIC that has not yet matured) cannot be transferred immediately. Confirm the terms with both institutions before submitting your request.

Frequently asked questions