How to Transfer an RRSP Loan to a Tax Free Account
- 1). Find the maximum TFSA contribution amount on your most recent notice of tax assessment from the Canada Revenue Agency. The CRA mails you this notice after assessing your tax return. Your TFSA maximum contribution amount is on the bottom of the notice of assessment. This is the maximum amount you can contribute to your TFSA for the current tax year.
- 2). Call the financial institution holding your RRSP loan for the loan balance. The phone number is listed on your financial institution's website. Typically you will go to the "investing" link and then to "registered plans." There you will find information on RRSPs and RRSP loans, and the customer service phone number.
- 3). Make sure the loan balance you wish to transfer is lower than your current TFSA maximum contribution amount.
- 4). Ask your financial institution to transfer the RRSP loan to your TFSA. Banks will transfer funds via the phone once you provide security screening identification or a telephone banking password. Other financial institutions, such as insurance companies, require a signed written request.
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