Transferring self directed RRSP to self directed TFSA

hesp wrote: ↑Has anyone done this. I called my bank BMO and they told me that i can port (keep stocks) over but will be taxed and can only move 41000 which limit. So i will get dinged like 30% tax rate as its like a withdrawal plus a $56 fee for processing. I might as well just open a self directed TFSA and leave my RRSP untouched

Why in gods name would you want to do this unless you are 71 years old.

lol. just wondering for some opinions. I wont do it as its not worth it . I'm in a higher tax bracket so RRSP is my best bet after more researching

Of course if you move money out of your RRSP you will have to pay tax on it, since it is an RRSP withdrawal.

Doesn't make any sense.

You earn RRSP contribution room based on past year's income, up to age 70. Once you withdraw, you lose that contribution room and tax-deferred compounding forever. The withholding tax isn't even what you need to worry about. At income tax time, the tax you pay is at your full marginal rate (higher than 30% by the sound of it).

There's no good reason to do this. Maybe if you took an entire calendar year off work as a sabbatical (and could afford to do so). That's a stretch for most. Just contribute to your TFSA and leave your RRSP untouched.