Transferring RRSP to other investment type without triggering tax consequences?
I have just over 10K in a RRSP, and it matures in feb 2014. I made the contribution a few years ago when i made over 55k one year, The past few years I've only made about 35-40k. Since RRSP rates are so pathetic these days and i'm still fairly young (32) I'd like to diversify the money into different areas, tax free savings, etfs, stocks etc. Is there a way to do this with the least amount of tax consequences?
- SparkyLv 68 years agoFavorite Answer
Any withdrawal from an RRSP will be considered taxable income. But you don't need to withdraw the funds from your RRSP in order to start investing in stocks and mutual funds. An RRSP can be self-directed, which means that you can control what the funds are invested in. Qualified investments include stocks, mutual funds, and some etf's.
If you decide to go ahead and withdraw the funds, you still might be ahead of the game. You make the withdrawal and pay your tax, which might be lower than the refund you received a few years back after the contribution. Whatever you have left, net of tax, can be put into a TFSA, and you never worry about the tax consequences again.
- Fred SLv 78 years ago
When the investment matures, you can reinvest in just about anything you want (stock, bonds, mutual funds, etc.)
There would be no advantage to moving it to any other kind of account (TFSA, etc.), because of the tax hit. You can buy all the stuff you're talking about (ETFs, stocks, etc.) within an RRSP.
But you can't do anything until the investment matures.
- Anonymous5 years ago
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The best strategy, if you do have experience type of return on a penny stock, is to sell the stock quickly.
Of course, it’s easier said than done. The natural thing to want when you see an increase in stock price is to hold the stock and hope for an even larger increase.
- GR8ADVICELv 58 years ago
That's tough! But if you sneak it you should be ok! But buddy I DO mean you GOTTA SNEAK IT!!! Like Sneeeeeeeeeeeeeeeak it... Not even like that like sneeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeak it! The other real dea with a move like that is you need to just be careful about the PTGB!