Common FAQs as it relates to Withdraw requests
How do I submit a request to withdraw from a single position?
Withdrawals from a single position are not possible for Optimize funds. For non-core positions, please reach out to your portfolio manager. Your portfolio manager will submit a request to sell the non-core security. Once the trade has been executed and has settled, a withdrawal request for an amount less than or equal to the net proceeds of this sale must be submitted within 7 business days of settlement. If a withdrawal request is not submitted within 7 business days of settlement, the proceeds will be re-invested into the model portfolio.
What is an offset account?
An offset account is CAD or USD non-registered account that is used when withdrawing funds from a registered account as an Electronic Fund Transfer (EFT). They are required since EFTs cannot be executed directly from registered accounts. The funds must first be de-registered to the offset account where the EFT will be sent out.
Why do I need banking set up on an offset account when withdrawing from registered accounts?
When withdrawing funds from a registered account, the process involves flowing the funds through the offset account. The EFT is then sent from the offset account, using the banking details linked to the non-registered offset account.
Are we able to withdraw funds as a wire transfer?
Withdrawals as a wire transfer are not available, please refer to the "Withdrawing from an investment account" article to learn about the different withdrawal methods.
How can I move money from a registered account to a non-registered account?
Please read the "Withdrawing to a related investment account" article on how to withdraw funds from a registered account to a non-registered account.
Can I specify withholding tax when withdrawing from a Registered Retirement Income Fund (RIF)?
You can specify additional withholding tax, but you cannot specify any amounts lower than the ones listed below.
How can I see the details of a withdrawal request that I submitted?
Refer to the "Withdraw Funds - Pipeline/Actioning" article for more information.
I accidentally rolled over my clients Registered Retirement Savings Plan (RSP) / Spousal RSP into a RIF / Spousal RIF. How do I reverse this?
Please refer to the "Rollback options" article to learn how to submit a rollback request
Why does it take longer when withdrawing funds from the Model Portfolio?
Withdrawals from Optimize funds require a sell. The sell orders are processed every Friday and will settle the following Thursday, which is when the withdrawal will be processed. The service standard is: If Submitted between a Friday and the next Thursday - The funds are sold and sent to the bank account within 3 business days after the following Thursday.
Are withdrawals from a Registered Education Savings Plan (RESP) account taxable?
It depends:
- Post-Secondary Education (PSE) withdrawal – a return of the contributions made to the RESP aren’t taxable
- Educational Assistance Payments (EAP) – includes various government grants (federal and provincial where applicable) and the Canada Learning Bond (CLB), as well as investment earnings on the grants, CLB, and RESP contributions. These amounts are taxable to the student beneficiary of the RESP.
Are withdrawals from a RIF / Life Income Fund (LIF) account taxable, and how is the withholding tax calculated on RIF / Spousal RIF / LIF withdrawals?
- Payments made from the minimum can be free of withholding tax. This means that there will be no withholding taxes on the payment, but will still be taxed as income when filing taxes.
- All other payments have withholding taxes according to the table below.
Are withdrawals from a FHSA account taxable, and how is the withholding tax calculated on taxable FHSA withdrawals?
A withdrawal from your First-time Home Saver's Account (FHSA) is not required to be included in your income if it is a qualifying withdrawal, a designated amount, or an amount otherwise included in your income.
In all other cases, an amount withdrawn from your FHSAs must be included as income on your income tax and benefit return for the year the withdrawal is received. This amount will be subject to income tax withholding, which can be claimed on your income tax and benefit return as a credit towards any tax owing for the year of the withdrawal.
If you have an excess FHSA amount, one of the ways that you can reduce or eliminate it is to make a taxable withdrawal. For more information, go to "What happens if you contribute or transfer too much to your FHSAs".
To learn more about FHSA withdrawals, read the "Withdrawing from a FHSA" article.
Are withdrawals from a RSP / Spousal RSP account taxable, and how is the withholding tax calculated on RSP / Spousal RSP withdrawals?
- Cash withdrawals from RRSP/Spousal RRSPs are taxable. A T4RSP slip will be issued
- Withdrawals for HBP or LLP are not taxed.
To learn more about RRSP withdrawals read this article
To learn more about HBP read this article
To learn more about LLP read this article
Are withdrawals from a TFSA account taxable?
Depending on the type of investment held in your TFSA, you can generally withdraw any amount from the TFSA at any time. Withdrawals made from your TFSA are not taxable.
A payment to my client's bank account bounced. Where do the funds go when this happens?
If the withdrawal is from a registered account, the funds will be in the Offset account. If the withdrawal is from a Non-Registered account, the funds will be returned to the same account.
What is considered valid Proof of Enrolment when withdrawing from a RESP account?
The document must include these mandatory pieces of information below and is valid 6 months following the end of the semester.
- Name of the post-secondary educational institution
- Name of the beneficiary
- The semester
- The student’s status (full or part-time)
The document must meet the following criteria:
-
Official document from the post-secondary educational institution
- All the information should appear on one document but if multiple documents are provided, the student’s alphanumeric code or full name must appear on all of them to link them
Acceptable documents (paper or online):
- Confirmation of registration by the Registrar
- Invoice of the educational institution
- Course Schedule
Non-acceptable documents:
- Acceptance letter
- Admission offer
You can find a template of what's accepted by the Association of Registrars of the Universities and Colleges of Canada (ARUCC) as a reference on the ARUCC website.
Why are there still funds remaining in a RESP account after I submitted a full withdrawal?
Funds remaining would be amounts that are ineligible to withdraw. Such as grants that must be paid back to the government. You can view the breakdown of the RESP on our CRM to find out what is left in the account.
How do I cancel a withdrawal request?
You must reach out to service@optimize.ca to cancel a request. Please note, there are no guarantees that the request can be cancelled.
Why can't I submit a request to withdraw funds in-kind from a RSP / Spousal RSP / RIF / LIF account to a related non-registered account?
These accounts are restricted from withdrawing in-kind since all withdrawals are subject to withholding taxes. Withholding taxes cannot be paid with In-Kind securities.
What is the RRSP admin fee?
There is a standard $28.25 fee charged for all RRSP withdrawals, regardless of the amount. When submitting the withdrawal request, you can specify whether this fee is charged to the gross amount, or to the cash balance of the account
- Included: This will deduct the Admin fee from the Gross amount. Reducing the taxable amount.
- Excluded: This will charge the Admin Fee to the account's cash balance, and will not affect the gross amount.
To learn more about RRSP withdrawals please refer to this article.
Do I need to submit multiple withdrawal tickets to Settle an Estate with Multiple Beneficiaries?
One withdrawal request is required per account, not per beneficiary. The Optimize LOD allows the designation of multiple beneficiaries and must be attached to the request.