Can I Move My RRSP or TFSA to Halal Investments Without Paying Tax?

Yes. A direct transfer from one institution to another is not a withdrawal, so there is no tax and your contribution room stays untouched.

The key is never to cash out yourself. Withdrawing from an RRSP triggers withholding tax and the full amount becomes taxable income. Withdrawing and putting money back into a TFSA in the same year can cause an over contribution penalty. A proper transfer moves the money directly between institutions for you. Ask about any transfer fees or sales charges on your current holdings before you move.

Want to know if your own accounts pass? Book your complimentary review with me.