Last updated on December 11, 2025.

Some things are hard. Doing the limbo after 40. Sticking to a diet during the holidays. Remembering how much groceries used to cost. But transferring your Registered Retirement Savings Plan (RRSP) isn’t one of them.   

And here’s another easy win: Choosing investments for your RRSP that reflect your values. A recent report found that two-thirds of Canadian investors are interested in investments that incorporate environmental, social, and governance (ESG) issues. Well, we’ve got great news for you, because Vancity is all about using money for community good.  

Whether you’re consolidating accounts, planning a first-home purchase, or just moving toward better rates and values, the process is simpler (and more beneficial) than you might think. 

What are the benefits of transferring your RRSP to Vancity? 

Besides the fact that we’d love to have you, there are a few tangible benefits to transferring your RRSP to Vancity:  

• Simplify your finances. Having all your investments in one place makes it easier to manage contributions and withdrawals later on and track growth. 

• Avoid unnecessary taxes. Direct transfers keep your money sheltered from tax so your savings can keep compounding tax deferred. 

• Access holistic services and great advice. Working with a wealth advisor who sees your full picture helps you plan smarter, not harder. 

• Support your values. Moving your RRSP to Vancity means investing in a financial institution that reinvests profits back into communities. 

Josephine Machira, Wealth Advisor with Aviso Wealth and Vancity Credit Union, says, “When you choose Vancity, you choose your BC community. Thirty per cent of our profits each year go toward change-making initiatives supporting local BC businesses to maintain or improve our community’s standard of living. We are BC strong, we are Canada strong!”  

Josephine also points out a few more benefits, like:  

• Access to RRSP investment options. These include term deposits, mutual funds and other financial market investments to grow your retirement savings.  

• The potential to qualify for loans. This could be the Vancity RRSP re-advanceable loan or RRSP top-up loans to help maximize your RRSP contribution room. Potential income tax refunds can be used to pay the loan. In some cases, you do not need to requalify for the loan.  

• One hundred per cent deposit insurance for funds held in Vancity RRSP accounts.  

What to expect from your RRSP transfer between financial institutions. 

RRSP transfers should be a straightforward process. Typically, all it takes is your signature on a form. The receiving financial institution takes on most of the legwork, including any contact with your previous institution.  

Once the transfer process has kicked off, it often takes two to four weeks to complete. Depending on the financial institution you’re moving from, you may be charged transfer-out fees. These typically are between $50 and $150, depending on your institution.  

Pro tip: Don’t take it upon yourself to withdraw from your RRSP. You’ll end up paying taxes on that money. Let your receiving financial institution transfer your RRSP directly to avoid a surprise tax bill.  

How to transfer your RRSP from one financial institution to another.

Starting the RRSP transfer process is as simple as booking and attending an appointment with the financial institution to which you’d like to transfer. Book a planning session with us, and we’ll show you just how easy it truly is.  

Here’s the step-by-step: 

Step 1: Book an appointment. Kick off your RRSP transfer by booking an appointment with Vancity. A bonus is that we can also guide you through other investment decisions you want to make. At Vancity, we offer free consultations with wealth advisors because they love talking about money.  

Step 2: Bring an RRSP statement to your appointment. For your appointment, you have one job: to bring a statement of the RRSP you’d like to transfer in. Luckily, in today’s world, these are often always online. 

Step 3: Connect with your advisor. At your appointment, talk to your advisor about transferring your RRSP. They’ll help guide you with financial advice so you can make a decision right for you. 

Step 4: Leave it with us. Your advisor will help you complete all necessary paperwork to begin the transfer process and any necessary communication with your previous institution. 

Once your RRSP’s been successfully transferred, you can start investing. 

What’s up with transferring RRSPs to a First Home Savings Account (FHSA)?

If you’re saving for your first home, your RRSP can help through an FHSA. You can now transfer funds from your RRSP to a First Home Savings Account (FHSA) without paying taxes. 

And Josephine points out that FHSA withdrawals for the purpose of buying a first home don’t need to be repaid. “Unlike Home Buyers’ Plan (HBP) withdrawals, which must be paid back into an RRSP over a 15-year period, investment returns within an FHSA are tax-free when withdrawn for the purpose of buying a first home, versus in an RRSP, where this growth is tax deferred. RRSP to FHSA transfers are therefore a tax planning strategy.” 

That means you can use your RRSP to help supercharge your FHSA, combining both programs for a bigger down-payment boost. And if you’ve already used the HBP, you can still open an FHSA for additional tax-free savings. 

“If funds transferred from an RRSP to an FHSA aren’t used to buy a first home, they can be transferred back into the RRSP, tax-deferred, as future withdrawals from the RRSP are taxable,” says Josephine. “If you’re unable to transfer the full amount from an RRSP to an FHSA, you can still use a combination of the FHSA funds and up to $60,000 from the RRSP for the purpose of buying your first home.” 

Ask your advisor how to make sure your transfer fits your contribution room as Canada Revenue Agency (CRA) limits still apply. 

Types of RRSP transfers you may want to consider besides an RRSP to FHSA.

RRSPs aren’t only transferred in retirement. Josephine lends her insight into the other RRSP transfers you may want to consider.  

Personal RRSP to RRSP 

If you’ve collected RRSPs at different financial institutions over the years (It happens!), you can combine them. Transfers can happen in cash or “in-kind” (meaning the investments themselves, like stocks or mutual funds, move with you). It’s an easy way to simplify your accounts and keep your retirement planning organized.  

Group RRSP to personal RRSP. 

If you’ve contributed to a Group RRSP through your employer (or another group) and those contributions are fully vested, or you made voluntary contributions, you may be able to transfer that money into your own personal RRSP. It’s a great way to keep everything under one roof when you change jobs. 

RRSP to Registered Retirement Income Fund (RRIF) or annuity. 

When you turn 71, your RRSP has to convert into a RRIF or annuity so you can start receiving retirement income. The transfer itself is tax free, but the withdrawals you make in retirement will be taxed. Skip to the next section for more on this!  

Good to know: You don’t have to wait until 71. “A full or partial RRSP to RRIF or annuity transfer can be done earlier,” says Josephine. A financial advisor can help you decide what makes sense for your situation. 

Spousal RRSP transfers. 

If a marriage or partnership ends, spousal RRSPs can be transferred to regular RRSPs as part of a separation agreement. The rules can be specific, so get some guidance to make sure everything is handled properly. 

Transfer of RRSP to Registered Disability Savings Plan (DSP) 

In the unfortunate event of the death of an RRSP holder, funds can be transferred tax free into the RDSP of a financially-dependent child or grandchild living with a disability. It’s one way to help ensure long-term financial support for loved ones. 

What you need to know about transfers when you reach RRSP maturity.  

If you’re approaching age 71, your RRSP matures by December 31 of that year. “In that year, the account must be converted into an RRIF or you must purchase an annuity,” says Josephine. “However, no withdrawal’s required in the year of conversion.” 

You’ve got a few options: 

• Convert to an RRIF. Keep your money invested and draw a steady income during retirement. 

• Purchase an annuity. Lock in a guaranteed income for life or a set number of years. 

• Split transfers. You can move part of your RRSP to a RRIF and part to an annuity, depending on your income goals. 

Your advisor can walk you through which combination makes the most sense for your lifestyle and tax bracket. And your advisor will make sure this is a direct transfer to avoid income taxes.  

It’s important you speak to your advisor before you turn 71. “If you don’t convert your RRSP into a RRIF or an annuity by the maturity date, your financial institution may be forced to convert the account into a RRIF,” says Josephine. “This isn’t recommended as there’s no rollover of beneficiary designations for your RRIF. In addition, the payment is typically set as the annual minimum payment with no withholding tax.” 

Another thing Josephine notes is that “RRSP maturity doesn’t eliminate HBP or Lifelong Learning Plan (LLP) obligations.” “If you still owe HBP/LLP repayments when your RRSP matures, the outstanding balance is added to current-year taxable income (unless paid before the maturity date).” 

Transferring foreign or U.S. retirement accounts. 

If you’ve worked or lived abroad and are moving back to Canada, you’ll want to consider transferring foreign retirement savings to your RRSP. Rules vary by country and tax treaty, so this is absolutely one to discuss with a financial advisor or tax specialist. 

Transferring an Individual Retirement Arrangement (IRA) to an RRSP, for example. 

There are plenty of considerations to take into account when transferring foreign retirement accounts. For example, “The CRA doesn’t allow direct transfers of U.S. retirement accounts, such as IRAs, into an RRSP,” says Josephine. “But the account holder can make a full lump sum withdrawal of funds from their U.S retirement account, which will incur a withholding tax.” 

Once you’ve reported the full before-tax withdrawal as income in Canada, you can then contribute the funds to a Canadian RRSP if meeting certain criteria. “You’re able to claim a special RRSP deduction under the Income Tax Act paragraph 60(j) to offset the contribution for income tax purposes,” says Josephine. “That’s even if you don’t have RRSP contribution room. The account holder can also claim a foreign tax credit for U.S. tax withheld.” 

With the right paperwork and a little help, foreign transfers can help you consolidate global savings and simplify your tax reporting in Canada. 

Transferring your RRSP FAQs.  

Can I transfer my RRSP without penalty? 

Yes, as long as it’s a direct transfer between institutions.  

Can I transfer funds from one RRSP to another? 

Yes, as long as you are the account holder for both. As long as you use an institutional direct transfer, you won’t be taxed. You may contribute funds to your spouse, or common-law partner’s RRSP, but you can’t transfer funds from your RRSP to theirs under normal circumstances. 

Can I transfer my RRSP to my Tax-Free Savings Account (TFSA) without penalty? 

No, you can’t transfer your RRSP to a TFSA directly. And an RRSP withdrawal is normally taxable. 

How to avoid tax on an RRSP withdrawal? 

You can avoid taxes on RRSP withdrawals by using the Home Buyers’ Plan (HBP) to buy a first home or the Lifelong Learning Plan (LLP) for education. You do, however, have to repay the amounts within a set timeframe. For all other withdrawals, tax is inevitable. You can, however, transfer your RRSP and avoid taxes with programs like the FHSA. 

Need advice on transferring your RRSP?  

RRSP transfers might seem intimidating, but with the right guidance, they’re one of the simplest ways to strengthen your long-term financial plan. Book a one-to-one planning session with a Vancity advisor and get the clarity and community-focused support you deserve. 

_{Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. The information contained in this article is from sources believed to be reliable; however, we cannot guarantee that it is the information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This information is for informational and educational purposes and is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters.  Using borrowed money to finance the purchase of securities involves greater risk than purchasing using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Please see our Terms of Use. or complete.  This material is not intended to be investment, tax or other advice and should not be relied on without seeking the guidance of a professional to ensure your circumstances are properly considered.}