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February 26, 2018
3:31 pm
tcharger67
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Quick question
RRSP tfsa and resp transfer fees. I incurred 135$ transfering my accounts out to another financial institution. Are they tax deductible?

Thanks
Ken

February 26, 2018
3:49 pm
James
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Hi Ken,

They are unfortunately, not tax deductible. Don't take my word for it though. Feel free to call and ask (number is below for your convenience).

1-800-959-8281

February 26, 2018
5:07 pm
AltaRed
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If these were both brokerage accounts, most receiving brokerages will cover the transfer cost, especially if the accounts are of more than minimal size. Did you ask the receiving institution to do that before you initiated the transfers?

February 26, 2018
5:11 pm
tcharger67
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AltaRed the costs were covered, but inadvertently the fee was withdrawn from the account and as such their is still tax ramifications.

February 26, 2018
5:27 pm
AltaRed
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tcharger67 said
AltaRed the costs were covered, but inadvertently the fee was withdrawn from the account and as such their is still tax ramifications.  

You just have to suck that one up as a taxable withdrawal. Generally, people also have a non-registered account at the same brokerage and the fee would normally come out of that.

February 27, 2018
1:29 am
Loonie
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How can it count as income if you never receive it?

February 27, 2018
6:37 am
Bill
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Anything coming out of an RRSP is taxable to the holder, no matter where the money goes. I'm guessing somewhere in the RRSP agreement it says the fi can withdraw anything it needs re related fees, or something like that, but maybe not. There are lots of instances where you are taxed on money that is sent to someone else, e.g. direct paycheque deductions to send off to another party re child support, alimony, etc.

February 27, 2018
8:17 am
Marnie
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I'm transferring my registered accounts to TDDI and they told me that reimbursement of transfer fees will be made within the registered accounts.

February 27, 2018
9:07 am
AltaRed
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Marnie said
I'm transferring my registered accounts to TDDI and they told me that reimbursement of transfer fees will be made within the registered accounts.  

That is what the receiving institution should do, e.g it becomes a negative administration fee that does not count as a contribution.

That said, the counter argument should be permissible as well in the transferring institution where a fee is not considered a taxable withdrawal first. I suspect there are some rules on that though as suggested by Bill.

February 27, 2018
9:35 am
Bill
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My guess is if your RRSP is increased because you paid someone an admin fee and someone else decides to reimburse you by making a contribution for you to your registered account I'm pretty sure the Income Tax Act sees that as a contribution by you (i.e. you received an amount and put it into your RRSP, albeit it was directly done by others on your behalf, is the substance of what happened) and thus reduces your contribution amount for that year by the amount of the reimbursement. Where's Norman1 when you need him?

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