Q&A: RRSP Transfer

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Adviser warns of tax consequences of transferring from one RRSP to another


Q – I was just at CIBC with a new financial adviser, they got rid of my old one. I wanted to transfer out funds held in a RRSP PPS portfolio to a GIC RRSP to preserve my gains from the last four years. The new financial adviser told me I would be paying capital gains to do this. This doesn’t seem right to me. It will still be held under the RRSP umbrella. Is this true information? – Carrie


A – It doesn’t seem right to me either. I cannot believe the adviser would be so misinformed to make such a statement so I have to assume he/she didn’t understand what you were asking to do. RRSP transfers are not taxable events as long as the money does not actually come out of the plan. All that’s required is the proper paperwork. – G.P.



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