Registered Products
Investing through a registered plan enables Canadians to minimize taxes while saving for the future.
Why Registered Plans?
You have many different types of accounts to choose from when saving for your future, with each offering plenty of advantages … as well as some restrictions.
Your two main account options are:
1. Registered Accounts
- Include Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs) and Registered Education Savings Plans (RESPs).
- Usually have some restrictions in terms of the amounts you can contribute each year and how much you can withdraw.
- Tend to offer attractive tax deferral or savings incentives. For instance, RRSPs allow you to defer paying tax on the amount you contribute, as well as on any income payments or investment growth achieved within your RRSP, until withdrawal.
- Tax-Free Savings Accounts (TFSAs), which can be used to help meet any financial goal, are funded using after-tax dollars. When you withdraw funds from this account, the amount is not taxable.
2. Non-Registered Accounts
Non-registered accounts don’t offer the same tax-deferral or tax-reduction benefits as registered accounts but have few or no restrictions in terms of how much you can deposit or how often you can access your savings.
Features:
- No Contribution Limit
- Not a tax-deductible contribution
- Fully taxable earnings growth
- Capital loss on investments can be used to offset capital gains (three preceding tax years, carried forward indefinitely)
- No maximum age for contribution
- Allows for recontribution for withdrawals
- No overcontribution penalty
