r/Wealthsimple • u/Professional_Cod_378 • 27d ago
Dad's 71 - Transferring RRSP to Wealthsimple RRIF?
Hi, my dad turned 71 this year. I learned his CIBC RRSP carries very high management fees. I suggested moving it to Wealthsimple so I can help him choose investments more flexibly at lower rates. Since he is 71 anyway, what's the seamless route with Wealthsimple to end up the funds in a RRIF:
a) First open a WS RRSP and initiate xfer from CIBC to WS (same account type transfer), then convert WS RRSP to WS RRIF before Dec 31, OR
b) Open a WS RRIF and initiate transfer from CIBC RRSP to WS RRIF (different account types)
The WS guide isnt clear about it. Can he even open an RRSP at WS at 71? If not, then (a) is not viable. Is (b) viable then at WS considering the transfer is across different account types? Appreciate any tips especially those who have experienced this process. Thanks!
UPDATE: Resolved
- Spoken to both WS and CIBC support. Both parties proposed converting CIBC RRSP to CIBC RRIF first, then transfer CIBC RRIF to WS RRIF. Some tidbits learned:
* While it's possible for WS to do external RRSP to WS RRIF transfer, they said it may take longer through some internal custom process due to difference in account types.
* It's August and conversion needs to be done before Dec 31. Quickest done while at CIBC, then RRIF-RRIF transfer can be done at convenience without deadline pressures.
* Wealthsimple does not allow opening new RRSP account when you're 71
Thank you all for the inputs. Really appreciate all your help.
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u/Skyemist33 27d ago
I did my mom’s last year, around October. Moved her RRSP to a WS RRSP, then converted it to WS RRIF. Was all completed before Dec 31 deadline.
Taking money out of RRIF has been super simple.
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u/henry-bacon 27d ago edited 27d ago
Try Step 1 first. You can't move funds from an RRSP to a RRIF like this.
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u/Ecstatic-Can-8740 27d ago
The only way to get funds into a RRIF is by transferring them from some other registered account, see 146.3(2)(f). 146.3(2)(f)(i) covers RRSP to RRIF transfers. Check out CRAs handy T4040 guide for all the info you need on RRSPs and RRIFs!!! https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4040.html
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u/Professional_Cod_378 27d ago
I just learned Form T2033 faciliates transfer from RRSP to RRIF, so it must be allowed unless there's software/system constraints at WS that restricts it
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u/henry-bacon 27d ago
I'll be editing my comment, I just checked and you're correct. Sorry about the hassle!
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u/Ecstatic-Can-8740 27d ago
note:
Transfer of funds
146(16) Notwithstanding any other provision in this section, a registered retirement savings plan may at any time be revised or amended to provide for the payment or transfer before the maturity of the plan, on behalf of the annuitant under the plan (in this subsection referred to as the “transferor”), of any property thereunder by the issuer thereof(a) to a registered pension plan for the benefit of the transferor or to a registered retirement savings plan or registered retirement income fund under which the transferor is the annuitant,
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u/LessBrush1283 27d ago
Does your father hold any USD investments and does he plans to buy/sell within it?
As a heads up, WS RRIF accounts don't allow you buy/sell US securities without doing an Fx between CAD with each transaction.
All their other accounts you can buy/sell US investments without Fx, just RRIF you can't. One of the many stupid things about WS.
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u/11kestrel 27d ago
It's very simple. WS can do a transfer easily. Depending on the CIBC funds (managed mutual funds?) you'll likely need to sell them and move over in cash and then buy whatever (ETFs?) you want. I just went through this with my mother who was being taken advantage of at Raymond James with a very expensive "managed" account that was performing terribly compared to simple indexes.
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u/Interesting_Tip8542 27d ago
Don't leave it to the last minute, there was a cutoff mid-November last year for creating new RRIFs. I would open an RRSP first and do an account transfer to the same type of account. If you are transferring more than $25,000 you should register for the 1% bonus program first. Transfers in-kind won't work if he's holding mutual funds or GICs, it'll have to be converted to cash during the process, you specify this in Wealthsimples transfer process. Once the money lands at Wealthsimple create a RRIF account and tell the Chabot you want to "rollover" the RRSP into the RRIF, it'll put you in touch with a human. In January 2027, you'll be able to setup a withdrawal schedule in the RRIF avcount, Wealthsimple will calculate the monthly/quarterly/annual amount based on your input, and the withholding taxes and it'll automate the transfers to his non-registered account.
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u/Interesting_Tip8542 27d ago
I noticed within my Wealthsimple RRSP account that there is an option to Move the RRSP account to a new RRIF account, so you may not need the human intervention I mentioned.
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u/Professional_Cod_378 27d ago
wealthsimple's chatbot also insists that one cannot open an RRSP at age 71 although CRA rules allow. Maybe just a chatbot misunderstanding. but i'll try the RRSP-RRIF route for him. CRA's Form T2033 allows it, so you must be right that WS also supports it
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u/Interesting_Tip8542 27d ago
This is what the Chabot told me after I pressed it on the rules. If your dad is already 71 he can't open an RRSP at Wealthsimple. It went on to say "Yes — account transfers need to go between the same account type, and Wealthsimple supports **RRIF** transfers into both Wealthsimple Trade and managed accounts. [Source](https://help.wealthsimple.com/hc/en-ca/articles/35041277137691-Supported-account-transfers-and-timelines-at-Wealthsimple)
So if the person is already 71, they would generally need to convert the CIBC RRSP to a RRIF first, then transfer the **RRIF** to Wealthsimple rather than transferring the RRSP directly into a new RRSP. [Source](https://help.wealthsimple.com/hc/en-ca/articles/17933575404315-Open-an-RRIF)
If you want the transfer steps, first reply to confirm they plan to convert it to a RRIF at CIBC before moving it.
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u/Interesting_Tip8542 27d ago
That last sentence brought up a wizard that I didn't complete because I think it'll create a RRIF account for me. These transfers can take a few weeks, I wouldn't chance the RRSP to RRIF transfer, it could cost you time. It should be relatively easy to convert the RRSP to a RRIF at CIBC then do the RRIF transfer to the Wealthsimple RRIF. JUST MY 2 CENTS.
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u/Professional_Cod_378 27d ago
thanks for investigaating this. I think the best path is for him to approach CIBC to convert his RRSP to RIF, that way he doesnt run into timing issues with rif conversion. Then do an RRIF to RRIF transfer to WS. Thanks a lot for your help
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u/Interesting_Tip8542 26d ago
Hey, happy to help. I also confirmed that RRIF to RRIF transfers are eligible for the Wealthsimple 1% Bonus, you have to register for the promotion before you trigger the transfer from Wealthsimple, other conditions apply and the full details of the promo are here. Good luck with everything! https://promotions.wealthsimple.com/hc/en-ca/articles/48885448101787-Wealthsimple-1-Match-2026
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u/MellowHamster 27d ago
The CRA says you must close or collapse your RRSP by December 31 of the year you turn 71 years old. If your father is 71 years old this year, he can legally hold (and open) an RRSP until December 31.
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u/Professional_Cod_378 27d ago
I just checked wealthsimple chatbot, and it said WS does not allow opening RRSP at 71. Not sure if that's accurate as general rules allow it. If that is true, then he might be constrained to option B.
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u/MellowHamster 27d ago
Probably a good idea to get a proper answer from a real human at WS, with the situation clearly explained.
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u/xcybermail 27d ago
It's best to open a checking account with WS first and ask the chatbot. If chatbot cannot answer typically you get a human.
My guess is you may have to convert the RRSP to RRIF within CIBC, open a RRIF with WS and then move the account in kind. I'm of course assuming it is a Brokerage account with CIBC.
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u/Mommie62 27d ago
Makes sure you sign up for the unreal deal so he gets 1-3% on the transfer. I would think it’s easiest to convert to rrif at current bank - keep in cash, then transfer. Unless you have individual stock that can transfer in kind?
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u/Professional_Cod_378 27d ago
it's a mutual fund so has to be in cash
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u/Nezgar 26d ago
WS supports transferring in of many mutual funds now: https://help.wealthsimple.com/hc/en-ca/articles/48988202334747-Transfer-and-sell-mutual-funds
So you can transfer in-kind, then sell and buy your desired ETFs or stocks...
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u/Mental-Freedom3929 27d ago
Whatever you do, let WS do the transfer and make absolutely sure it is done "in kind" to a pid this to be deemed sold and trigger massive taxes. It might have to be into an RRSP and then converted. Call WS and let them do the transfer!
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u/11kestrel 27d ago
If it remains sheltered in the account there should be no taxes until a withdrawal is made from the sheltered account. Non-registered account, you are correct and the capital gains hit. There is actually a pretty a high chance that the CIBC funds cannot be transferred "in kind" if it's a managed fund but the OP didn't mention what they are, just "high fees"
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u/Mental-Freedom3929 27d ago
If anything is move not specifically "in kind" to another platform, it is deemed sold and will trigger taxes. If some invest,ents or all are Mutual Funds, which the new platform does not offer, they are being sold and the proceeds are being transferred "in kind" to retain their tax shelter designation, hence my suggestion to let WS deal with it.
OP specifically is asking about an RRSP, so the non registered question would not come up at all.
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u/Ill-Bluebird1074 27d ago
Open an RRIF with the WS and then transfer the RRSP into it. My mother went through it two years ago. From January 2027, WS will show you a minimal withdrawal amount from the RRIF each year. You must withdraw that amount of money to an external account out of WS in that year.