RRSP | RRSPs and RRIFs | Discussion forum

If these were both brokerage accounts, most receiving brokerages will cover the transfer cost, especially if the accounts are of more than minimal size. Did you ask the receiving institution to do that before you initiated the transfers?

tcharger67 said
AltaRed the costs were covered, but inadvertently the fee was withdrawn from the account and as such their is still tax ramifications.  

You just have to suck that one up as a taxable withdrawal. Generally, people also have a non-registered account at the same brokerage and the fee would normally come out of that.

Anything coming out of an RRSP is taxable to the holder, no matter where the money goes. I'm guessing somewhere in the RRSP agreement it says the fi can withdraw anything it needs re related fees, or something like that, but maybe not. There are lots of instances where you are taxed on money that is sent to someone else, e.g. direct paycheque deductions to send off to another party re child support, alimony, etc.

Marnie said
I'm transferring my registered accounts to TDDI and they told me that reimbursement of transfer fees will be made within the registered accounts.  

That is what the receiving institution should do, e.g it becomes a negative administration fee that does not count as a contribution.

That said, the counter argument should be permissible as well in the transferring institution where a fee is not considered a taxable withdrawal first. I suspect there are some rules on that though as suggested by Bill.