I plan on transferring stocks owned in my TFSA to my RRSP as part of my 2015 RRSP contributions.

However, I do own some US stocks in my TFSA. When I transfer those stocks, are there any tax implications? Withholding tax on capital gains, for example?

I only know that TFSA and RRSP are treated slightly differently when it comes to owning US equities, due to treaties between the US and Canada regarding retirement investments, but I don't know the details.

2 Answers 2


US domiciled stocks/etfs are better held in a RRSP as there is no withholding tax on dividends.

Your bank probably won't allow this. They might make you withdraw from the TFSA and then make a cash contribution to the RRSP. There's no tax implications and makes it easier for the bank to follow the rules. Plus they get extra commissions. If so, better hurry as there's 3 days for settlement before you'll get the money.

The extra room made in your TFSA by the withdrawal will only be available next calendar year.


The other answer discusses issues related to the US-or-not aspect of the securities, but it is worth mentioning that if you make any sort of in-kind transfer to your RRSP, you should not transfer any securities for which you are sitting on a capital loss, since you won't be able to deduct it. In that situation, it's better to liquidate the securities and transfer the cash directly to the TFSA.

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