TFSA Transfer while holding non-transferable securities? | Tax Free Savings Accounts | Discussion forum

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TFSA Transfer while holding non-transferable securities?
March 14, 2024
2:38 pm
PassiveandWary
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July 19, 2023
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Let's say I want to do a TFSA direct transfer from TD Direct Investing to Tangerine. The money in the TFSA is currently fully invested in TD ISAs that a Tangerine TFSA, a cash-only account, cannot hold.

Would either Tangerine or TD automatically sell off the assets in the TFSA at some point in the process, or would the ISAs need to be sold and turned into cash in advance of the transfer application in order for it to go through?

Trying to avoid a situation where the money sits in the TFSA goes for weeks without earning any interest.

March 14, 2024
3:09 pm
Loonie
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It has to be turned into cash before TDDI can send it anywhere.

In our experience, TDDI is extremely poor at actually getting transfers done, so, yes, you will likely have the money sitting there for weeks if not months earning nothing; and they will charge you about $150 for this "service" even if you have cashed out your ISA and the account is all ready to go.

March 14, 2024
7:29 pm
Norman1
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April 6, 2013
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On the transfer form, just pick to transfer out in-cash instead of in-kind.

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