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By Allan Norman, MSc, CFP, CIM on January 13, 2025
Estimated reading time: 6 minutes

By Allan Norman, MSc, CFP, CIM on January 13, 2025
Estimated reading time: 6 minutes

To have liquidity and reduce taxes, Canadians can move money between registered accounts. But what are the tax, contribution room and other implications?

My husband and I are retired with $200,000 in our TFSAs, $230,000 in our RRSPs and RRIFs, and we have an emergency fund. Our household income is $85,000 a year.

My husband may need nursing home care at some point, so I have been moving assets from the RRSPs to our TFSAs for flexibility. My spouse, who is over age 71, has about $50,000 of RRSP contribution room left.

We would like to leave money to our only child and may soon open a non-registered investment account.

Should I move TFSA and other assets into a spousal RRSP before I turn 71, and continue to draw down our RIFs/RRSPs to our TFSAs? Or should I leave things be?


—Irene


I like your thinking, Irene. You’re looking ahead to see how you can minimize taxes and create more options for you and your husband. Money withdrawn from a registered retirement savings plan (RRSP) and/or a registered retirement income fund (RRIF) is taxable, so why not move it to a tax-free savings account (TFSA)? That can mean tax-free growth and withdrawals.

You are also wondering if there is a way to use your husband’s unused RRSP contribution room. As we work through these points, I think you will come up with a strategy that will work for you.

Let’s step back and look at the bigger picture, before focusing on a strategy for your registered accounts. You have an annual household income of $85,000, which I’m assuming is a pre-tax figure. If your combined Canada Pension........

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