Source
r/PersonalFinanceCanada•
flushotmonkey

Can I sell equities in my RRSP and move funds into another RRSP account?

I'm a little confused here. I took my 2019 bonus in company stock that was deposited into my RRSP in March. Obviously there have been some significant gains since then and the stock price is getting within the ball park of where I think I want to sell but I obviously don't want to pull the money out of my RRSP, I just want to move into cash for now (or into another investment potentially). The service I'm with through my employer doesn't appear to let me sell and keep cash in my account so I think I have to move it out into a personal RRSP account but it doesn't seem to let me do that without taking it out of my RRSP? Am I just doing something wrong or can you actually not sell your position without withdrawing the funds and paying tax?! That can't be right, can it?

I googled but I think my question is so stupid that no one has actually wrote anything about it. This bonus is like 66% of my portfolio right now so I cannot possibly keep it all in one company much longer.

Posted Apr 29, 2020, 4:15 PM UTC

10
xenocidic•

You'll have to have your broker initiate a transfer request for that RRSP.

2
Nether84•

You can transfer between institutions, usually for a charge, although if with your work and through a company like Sunlife you may get one transaction a year. For example I'm with Sunlife and I can transfer our my company shares in whole to my questrade account once a year without penalty. All of the shares move and any partial shares go in as cash. This works the same way for TFSA, RRSP or unregistered.

1
Dodge71•

I am in the same boat. I wanna move all of my RRSP from TDB 887 to Quest trade. They have 3 options to transfer. All in cash, All in kind and partial transfer. It says for All in cash " Your financial institution liquidates all of your securities and transfers the funds to your Questrade, Inc. account." Do you have to pay taxes on this? Can i even do "all in kind" because Questrade doesn't hold TDB887?

1
flushotmonkeyOP•

Yeah my work is with Solium and I see no option to sell without paying tax. Super frustrating. There has to be a way for me to sell without pulling out the cash from the RRSP, right???? I can't possibly be expected to keep my money in one equity until I retire.

1
Dodge71•

What broker do you want to transfer to?If the broker does the transfer I believe you don't have to pay taxes. There should be a way to transfer with every broker.But I wanna make sure before I do it.

1
flushotmonkeyOP•

Yup I think I found it! Wealthsimple will cover all transfer fees if the amount is over $5000 as well. Thank god.

Although Solium makes it an unbelievable pain in the ass to locate your account number.

1
Dodge71•

This was the answer from Questrade:

If you do All in Cash, your securities will be cashed out. And transferred over to us. For taxation inquiries, I am unable to answer that question as I am not licensed. Please refer to a tax specialist for all tax related questions

Someone help!

1
Baljit147•

I did this less then a year ago but a different fund. TD will sell whatever you have and send the money to your Questrade account. Once it's there you just buy stocks, etfs or whatever else like normal. There shouldn't be any kind of tax on this as the money is just being transfered from one RRSP to another.

Make sure your transferring the money and not withdrawing it.

1