Theoretically, let's say you have 1000 shares of Poet (@ 1.50/share = $1500) in your RRSP and your applicale tax rate is 25%. You want to move it all to TFSA where it is not taxable - smart move. You have two options....but you have to remember that in RRSP, both your previously tax-protected contributions and any/all gained profits are subject to your applicable tax rate.

Option #1: Take it out right away ( = $1500) and pay the 25% applicable tax of $375 - painful but quick and it's over.

Option #2: Wait until Poet appreciates to $5.00/share (now 1000 shares = $5000) and then take it out. Now, all your gained profits are also subject to tax whereby 25% = $1250.

I presented two scenarios because it could be argued that while $1250 is a larger sum, it is mostly paid from profit, therefore sort of costs less.

Not to be construed as tax or investing advice.

Doodlebug