RE:RRSP to TFSA questionFrom my understanding of how RRSP and TFSA works is that I would guess that you are correct that there would be a net zero tax implication. UNLESSSSS the money you take out of your RRSP is taxed differently from regular income.
From my understanding, when you take money out of RRSP it adds to your annual income for taxing purpose. So you would have $10 000 added to what ever you're making at your job. At the end of the year you contribute $10 000 so that takes that amount off your final annual income.
Like the other poster. you should ask your accountant if you have one.......I do'nt.
Seedickcook wrote: Hoping someone here can confirm or refute this. I am in a fairly high tax bracket, and with my pension will still be in that tax bracket at retirement. (I know, poor me right?) As such I've ceased any further contributions to my RRSP. I do have a chunk of money in there however that would likely fare much better in Aphria or Liberty Health. What I don't want however, is to have to pay tax on significant gains if I stick to purchasing stocks within the RRSP. If I were to withdraw RRSP money this month, lets say $10,000 - transfer to my TFSA and buy the stocks within the TFSA for the free growth - but then reinvest the initial $10,000 back in December will I have a net zero tax implication come tax time? I understand I would lose the contribution room in the RRSP forever, but I have no intentions of maxing it out regardless. This way, any profits I make from my stocks in the TFSA are tax free. Thoughts or alternatives appreciated... SDC