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I have had my investments managed in a TFSA by fundex for many years. Now I want to take things into my own hands and manage my own investments. I am trying to transfer my funds out of one TFSA and put it into a TFSA I opened with Questrade, but I can not find out how. My Financial adviser (disgruntled that I am leaving) told me to submit a T2033 Transfer form but it looks like that is for RRIF, an SPP, or a PRPP. I have spent hours trying to figure this out. Help!

Trev

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The CRA's website has pretty good information on this type of thing. The search function is not great, however, so I recommend going to Google and typing:

Site:canada.ca [search term]

If you search

Site:canada.ca TFSA Transfer

It brings you here: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/transfers/transfers-between-your-tfsas.html

"If you want to transfer funds from one TFSA to another or from one issuer to another, there will be no tax consequences if your issuer completes a direct transfer on your behalf. For more information, contact your issuer."

It seems that this is not something you are able to perform yourself. Unfortunately it seems you may need to go back to your issuer with this information and ask, again, that they perform the transfer on your behalf. Note that failure to comply with this request on their end likely has stiff penalties behind it, so it may help you to get the individual's name and wave that stick around to make something happen.

You may also have better luck by first opening an account with your new desired institution, and asking that they assist in requesting the transfer from your old institution. They have incentive to help you here as it's the only way they get to serve you, so you'll have valuable help on your side.

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    I talked to a questrade rep today and they said that they will manage the transfer themselves (they actually prefer to do it), I just have to fill out the forms. – Trevor Harder Sep 20 '17 at 0:54
  • @TrevorHarder Thanks for the comment. Does it also work if someone only wants to transfer partial funds from one TFSA to TFSA on Questrade? – Shobhit Puri Dec 30 '17 at 9:09
  • @ShobhitPuri The quickest way to answer your question would likely be for you to directly ask Questrade directly. I don't see why a partial transfer would be a problem tax-wise per references from the CRA above, so this would purely be an administrative problem to resolve on Questrade's end. – Grade 'Eh' Bacon Jan 2 '18 at 13:26
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Assuming that the assets in the "old" TFSA are in cash, you could simply withdraw the money and redeposit it in the "new" TFSA, in the following year!!. The yearly limit is on your gross deposits for the year, not the net.

This method obviously works best near the end of December.

You should expect the new TFSA to briefly question the amount; they don't want to help you make a costly mistake.

At other times, the direct transfer in @Grade EhBacon's answer would be better.

  • If it happens to be Dec 31st, and you happen to have your TFSA entirely invested in cash already, then yes, it might be fine to withdraw today and recontribute tomorrow. But even in that case, it would be more / at least as much hassle as simply having the bank transfer completed. – Grade 'Eh' Bacon Sep 19 '17 at 15:32

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