When a bank charges a fee for an in-kind transfer between RRSP accounts can they actually take the money from the registered account?
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Our response:
Rules regarding treatment and administration of RRSPs are set by the Canada Revenue Agency (CRA). For specific information about how RRSP rules apply to you, contact the CRA. The following is general information only.
You can transfer cash and investments between RRSPs you hold at the same or different financial institutions. Tax will not be withheld if the transfer is made directly by the financial institution and amounts you transfer directly to your RRSP do not affect your RRSP deduction limit. You can’t transfer money from your RRSP to the RRSP of someone else. This applies to any spousal RRSPs that you may be contributing to.
One or both of the financial institutions involved may charge you a transfer fee. How this fee is collected depends on the rules set out in the RRSP agreement you have with your financial institution. Learn more about RRSP transfers.