Personal Finance

Transferring Stocks from regular ESPP account to TFSA stock account (WealthSimple)

  • Last Updated:
  • Oct 7th, 2021 8:15 am
Newbie
Oct 22, 2019
88 posts
96 upvotes
Whitby

Transferring Stocks from regular ESPP account to TFSA stock account (WealthSimple)

I have some ESPP (Employee share purchase Plan) stocks with my ex-employer stock brokerage account with Morgan Stanley (Shareworks)
They want me to transfer those within 90 days of my last working day.

Now I have two accounts (TFSA and Non-TFSA) with wealth simple trade. Just wondering if I can transfer those stocks 50-50 into both accounts
Will it have any tax implications specially for moving to TFSA account?
- RFD is love
1 reply
Jr. Member
Oct 22, 2020
119 posts
105 upvotes
What was the type of account for original ESPP? My previous company's plan had a mix of non-registered and registered accounts. There was tax implications on the non-registered investments. I think typically the receiving company cannot accept as contributions proprietary products (I wasn't able to transfer any mutual funds), so they were sold into cash. I was able to transfer company shares in-kind (already inside registered account, so no tax consideration there). For your case, if going from non-registered to TFSA, they would be deemed "sold" for tax purposes. Of course if you are affected by any of the employee stock option rules, there may be additional tax there separate from the act of transferring.

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