I am starting to look into my withdraw plans. Part of my FIRE plan is to draw down my RRSP in the first 5 years before my pension money starts rolling in. Drawing down my RRSP while my income is low seem like a smart move. Currently my RRSP is holding VTI in US$ and I started to wondering if I could withdraw that in kind and transfer to a taxable account or something. Saving the currency conversion fees and still be able to hold VTI in US$.
I found some info here
https://www.taxtips.ca/rrsp/inkindwithdrawals.htm The Minister of Finance issued a press release on November 20, 2008 indicating that he was expecting all financial institutions to accommodate in kind transfers from a RRIF, at no cost to clients, or offer another solution that achieved the same result.
I would still have to pay tax on the value of my VTI the day it was transferred and the new ACB would be based on that days price going into to my taxable account.
I still have to find out if it is allow and if it can be done at no cost. Just because a Finance minister said it 12+ years ago doesn't mean the banks did anything about it.
Does this sounds like a wacky plan? I could just liquidate the VTI and move cash. The benefits of holding VTI in a taxable account would not be the same as when it was in my RRSP (no longer protected by the tax treaty). I still have a few years to figure this out ,but would like any comments or thoughts.