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Converting RSPs to RIFs
December 24, 2018
6:43 pm
AltaRed
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Loonie said
The transfer in-kind is a good idea, one I was not aware of. At the same time, though, it appears ICICI is not aware of it. If you had tried to do it, it might have taken them even longer to work out! - time you can't afford.  

On reflection, this may be more doable with brokerage accounts rather than with banks where it seems they have to complicate things immensely in terms of what one can do and can't do.

December 26, 2018
11:00 am
Norman1
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There are three ways an RRSP can be constructed:

  1. Depositary RRSP
  2. Trusteed RRSP
  3. Insured RRSP

#2, the trusteed RRSP, is the most flexible because it is a trust. That is what self-directed RRSP's with brokers are. To do an in-kind withdrawal, the trustee transfers ownership of the GIC, stock, or bond in the RRSP from something like "The Bank of Nova Scotia Trust Company In Trust for RRSP of Alice Smith" to "Alice Smith". The GIC, stock, or bond is not otherwise affected.

The other two are special RRSP deposit or insurance contracts.

Banks prefer the depositary RRSP for GIC's because it is cheaper. A depositary RRSP doesn't require the involvement of a trustee.

January 1, 2019
1:27 pm
anitavirginia
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anitavirginia said
Thanks for all your comments. It helped me through the process.

just returned from branch. ICICI.

They advise that they do not have RRIF product.

Best they could do was to close gic rrsp into savings rrsp, at a reduced interest rate of .5%. They hope this will be processed by Thursday the 27th. Then they will transfer funds from rrsp savings to regular savings, hopefully before the end of 2018.

Fingers crossed. They advised to call them on the 27th, to follow up.  

Just a followup to the above.
On the 24th went to the branch to action getting funds out of rsp for the 2018 year.
Did all paper work, for early redemption of gic rrsp, getting .5% only. After not seeing anything online on the 27th, called branch and they would not reply numerous messages.
Ended calling call center, and all they could do was send a memo to the back office to expedite.
On the morning of the 28th, I saw the money in my rsp savings.
They had not put it into my non registered savings.
After calling many different extension numbers at the branch, I got a live person.
They handed over the call to the person I intially saw in the branch. He said he would initiate transfer to non reg savings, but it would take a few days. I advised that I need it to happen for the 2018 year.
He could not guarantee this would happen. I asked to speak to manager of branch.
After a few conversations with the manager, he expedited the process, and stated that I would see funds in non reg savings account within a hour. He was good to his word, and the funds appeared in the account.

I pushed funds out of savings to another institution, minus the withholding tax.

thanks for all the comments from those who commented on my issue. Happy New Year.

I would not recommend ICICI Bank to my enemy, that would not be fighting fairly.

January 1, 2019
3:58 pm
Loonie
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Whew! Just under the wire! And it sounds like you had to spend most of the day on the phone to make it happen - after having been promised that it would happen. At least the manager did what the others should have been able to do.
I'm glad we were able to provide some support through this nasty experience.

I don't know what gets into their heads when they think that it's a time-consuming problem to withdraw funds from an RSP savings account, but this isn't the first time I've heard such a theory. I got the same crap from Tangerine the other day over an RIF, but, with persistence I prevailed. I get the impression, with Tangerine at least, that they feel they own my money and get to control it; and this is not the first time I've felt that way with them in regards to RSP/RIFs.

As evidence that this should not be an issue in a well-managed financial institution, I closed down an RSP savings account at National Bank a few years ago. I called in the morning to tell them this is what I wanted to do and picked up the cheque in the afternoon. All the paper work was ready for me to sign when i got there and it took about five minutes. I had no other accounts with them.

January 1, 2019
4:32 pm
Oscar
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Loonie said
Whew! Just under the wire! And it sounds like you had to spend most of the day on the phone to make it happen - after having been promised that it would happen. At least the manager did what the others should have been able to do.
I'm glad we were able to provide some support through this nasty experience.

I don't know what gets into their heads when they think that it's a time-consuming problem to withdraw funds from an RSP savings account, but this isn't the first time I've heard such a theory. I got the same crap from Tangerine the other day over an RIF, but, with persistence I prevailed. I get the impression, with Tangerine at least, that they feel they own my money and get to control it; and this is not the first time I've felt that way with them in regards to RSP/RIFs.

As evidence that this should not be an issue in a well-managed financial institution, I closed down an RSP savings account at National Bank a few years ago. I called in the morning to tell them this is what I wanted to do and picked up the cheque in the afternoon. All the paper work was ready for me to sign when i got there and it took about five minutes. I had no other accounts with them.  

I decided to withdraw some RRSP money this year so I waited until the GIC was a couple of days to maturity and then visited the branch on a Friday and told the teller what I wanted done. She had me sign a couple of papers and I was out the door within 10 minutes. And true to her word the GIC was renewed and the withdrawl was in my savings account when I logged in to my account on Tuesday morning. Couldn't have been easier for me. The key is that the employee has to know their job and this one did . This was at Duca.

January 10, 2019
5:35 pm
Loonie
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If I could downgrade Tangerine even further, to an F-minus, I would.

They gave me lots of grief back in the spring when I insisted on converting my RSP savings account to an RIF.
I finally managed to accomplish this. However, my statement from Tangerine for the final quarter of 2018 STILL shows the RSP account, although with no money in it, despite the facts that I told them to close it, in May and I am now past the age when the govt permits RSPs.

Further, I attempted to close the RIF in December but got more hassles. The first guy I spoke to didn't follow through in any way. The second, a few days later, didn't succeed in closing it although he took out a large lump sum. I wanted to get it off my books for 2019, but no such luck. I am stuck with $7.14. i wonder how long it will take to get rid of that...

Other banks manage to do this right. Why can't they?

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