“If I directly transfer my RRSP proceeds to a TFSA, do I get taxed for the amount transferred?”
Submitted by: Amador O.
There is no direct way to transfer funds in a Registered Retirement Savings Plan (RRSP) to a Tax-Free Savings Account (TFSA). In order to contribute funds to a TFSA from an RRSP, you must withdraw the funds, and pay any applicable withholding tax, plus any additional taxes at tax time. You must also have the available contribution room in your TFSA.
Speak to a registered financial advisor or tax professional for advice related to the tax handling of your investments.