Moving money between accounts can be a bit tricky because of withdrawal rules and contribution limits for certain registered accounts (like an RRSP or a TFSA). Below are some guidelines with things to consider when moving money between your Wealthsimple accounts.
Once you've read through the guidelines below and would like to proceed with submitting an internal transfer, you can do so from the "Funding" page of your profile! Keep in mind that this capability is currently not supported within the app, so you'll need to be logged in via a web browser such as Chrome or Safari. While on the "Funding" page you can select one of your Wealthsimple accounts in the "From" dropdown menu, and can select the desired destination account in the "To" dropdown menu as normal.
Not all accounts currently support internal transfers. If you do not see the account in the "To" section, please e-mail support to see if the internal transfer can be conducted manually by our back-office.
Personal Accounts: These accounts do not have any withdrawal rules or contribution limits and so money can moved in or out of these accounts. One consideration is whenever you move money from a Personal account, you'll be realizing gains or losses.
TFSAs: These accounts have contribution limits and so you will want to ensure that you have the appropriate contribution room if you are transferring money into your TFSA. We encourage you to create an account online with the Canada Revenue Agency (CRA) to determine if you have enough room!
When moving money out of a TFSA, the main thing to note is that the amount you withdraw will not be added back to your contribution limit until the following calendar year.
RRSP Accounts: These accounts also have contribution limits but the amount is based on a few different things. Again, we encourage you to create an account online with the Canada Revenue Agency (CRA) to determine if you have enough room. The contribution room you have available for the current year is also be stated on your notice of assessment.
If you are moving money out of your RRSP, be wary that there are withholding taxes associated with these withdrawals.
RESP Accounts: These accounts only have one hard limit of contributing a lifetime maximum of $50,000 per beneficiary. If you have an RESP account with multiple beneficiaries (i.e., multiple future scholars), you will need to specify how you would like the money moved into this account allocated between them.
Withdrawals from an RESP requires a few additional details, but feel free to contact our Relationship Management team about this or give us a call at 1-855-255-9038.
As mentioned before, if you plan to move money into or out of an account that is not listed, please contact us about this as well!