Personal Finance

Convert Fund to Registered Fund tax implications

  • Last Updated:
  • Jan 28th, 2014 11:15 am
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Newbie
Aug 25, 2013
22 posts
1 upvote

Convert Fund to Registered Fund tax implications

I've got an ING Fund with a really small amount of money.
I was wondering if I convert that fund to an RRSP Fund if such operation would have tax consequences?
Reasoning:
->Is it considered like "complete withdrawal" and then RRSP creation? (it is not 100% what I'll do since I'll call them to perform this operation)
->Is it considered like I've had no gain/lose and just moved to RRSP? (doesn't sound right since I've put a number and now the fund fluctuated and I've got a different number)

How is such operation considered/treated?
2 replies
Newbie
Jan 10, 2011
85 posts
36 upvotes
Calgary
jllamasaspa wrote: I've got an ING Fund with a really small amount of money.
I was wondering if I convert that fund to an RRSP Fund if such operation would have tax consequences?
Reasoning:
->Is it considered like "complete withdrawal" and then RRSP creation? (it is not 100% what I'll do since I'll call them to perform this operation)
->Is it considered like I've had no gain/lose and just moved to RRSP? (doesn't sound right since I've put a number and now the fund fluctuated and I've got a different number)

How is such operation considered/treated?
You will be deemed to have disposed of the mutual fund at the current market value. You would be responsible for the capital gain or loss on the tax return for the year the transaction took place. You would transfer the cash or the mutual fund (if an in kind transfer is permitted) into your RRSP and claim a deduction from your income for the value of the cash or the market value of the mutual fund (provided you have enough contribution room available). The mutual fund is then treated as any other mutual fund held in an RRSP.

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