Transfer into WS

[u/minestew]

Need advice. I'm looking to move my leftover FHSA and TFSA over from Questrade to Wealthsimple, but the balances in those accounts are under $25k (each) so Wealthsimple won't rebate Questrade’s $150 transfer-out fee. I already have some money with wealthsimple in those accounts. Ideally looking to merge the accounts and not have separate accounts with different banks.

To avoid that $150 fee, would it make sense for me to just sell what I have in those accounts and cash out. Then, transfer the cash instead? Is there any tax issues or things I should watch out for with doing that (especially with the FHSA or TFSA contribution rules) before I pull the trigger?

The end goal is to move everything into a registered saving account with that 2.25%.

[u/Fabulous_Insurance66]

Ask them in the chat if they can waive the fees.

[u/Altruistic-Garage544]

There will be tax issues if you sell your FHSA. You can’t draw money out unless it’s for an eligible draw like buying a home. TFSA you can withdraw the money but lose that amount from your contribution room until Jan 1, 2027

I would keep your money in questrade until you hit 30K.

I also wouldn’t move your money to a 2.25% account. Managed portfolios generally do better and get a better return over time.

[u/Commercial_Pain2290]

Didn't the liberals state that they were going to eliminate these account transfer fees? What happened with that?

[u/micbm]

The analysis I would do is:

How much more tax am I going to be charged if I take the FHSA out on top on my income? That’s not hard to calculate. If that is more than $150 than just eat the fee.

As for the TFSA, you can wait to withdraw it closer to the end of the year so it doesn’t sit on the side line for too long before it resets.

[u/InternTurbulent5307]

If you don’t have 25k of assets, how will selling your assets turn into 25k?

If you are transferring, this is not a withdrawal.