Registered investment accounts

Types of investments

Generally, the types of investments that are permitted in a TFSA are the same as those permitted in a registered retirement savings plan (RRSP). This would include:

  • cash

  • mutual funds

  • securities listed on a designated stock exchange

  • guaranteed investment certificates

  • bonds

  • certain shares of small business corporations

Transfer between accounts

If you transfer an investment from your RRSP to your TFSA, you will be considered to have withdrawn the investment from the RRSP at its FMV, and that amount will be reported as an RRSP withdrawal, and must be included in your income in that year. The tax withheld on the withdrawal can be claimed at line 437 of your income tax and benefit return. If the transfer into your TFSA takes place immediately, the same value will be used as the amount of the contribution to the TFSA. If the contribution to the TFSA is deferred, the amount of the contribution will be the FMV of the investment at the time of that contribution.