Can I transfer stocks to my RRSP?

Question: I want to make an RRSP contribution this spring. I have minimal cash on hand, but about $10,000 in stock. Would you recommend transferring some of the stock to a self-directed RRSP? What are the tax implications of making such a transfer?


You can transfer stock into a self-directed RRSP – it’s called a contribution in kind. However, you are deemed to have sold the stock when it goes into the plan. If there is a capital gain as a result, it becomes taxable. However, capital losses incurred in this way cannot be claimed. So don’t transfer losers into an RRSP – sell them instead, so you can claim the capital loss.