Can RRSP or RRIF funds be transferred to a TFSA?

• A. Yes
• B. No
• C. Only with tax credit
• D. Only if you have available TFSA room

Answer: (B)

Direct transfers from RRSP or RRIF to a TFSA aren’t allowed. Transfers are only made between like plans (RRSP to RRSP, RRIF to RRIF, etc.). If you want funds in a TFSA, you’d have to withdraw from the RRSP or RRIF and then contribute to the TFSA, using your TFSA contribution room. The withdrawal from an RRSP is taxable, and RRIF withdrawals are included in your income for the year, while TFSA contributions are not deductible. There’s no tax credit or direct transfer path for moving funds straight from RRSP/RRIF to a TFSA.