Have you reached your maximum TFSA contribution limit? Topped up your RRSP? If your answer is yes, and you want
to keep saving for your retirement, then a non
registered savings plan sometimes referred to as an NRSP is what you
need! Explore how this effective and flexible investment account can fit with your retirement plans.
What is a non
Before we define a non-registered account, it helps to know what makes an account “registered.” In Canada, a
variety of savings and investing accounts offer tax incentives for contributing. As such, they are registered
with Canada Revenue Agency Registered Retirement Savings
Plan RRSP , Tax Free Savings Account TFSA , Registered Education Savings
Plan RESP , as well as income generating accounts, like the Registered Retirement Income
Fund RRIF .
CRA and come with
limits on contributions, as well as rules around withdrawals and age. These accounts include the
On the other hand, non
registered accounts come without these restrictions. While
this increased flexibility offers greater potential for growth, the trade off is
that you lose the tax-sheltering advantages on your contributions and investment growth. Still, in cases where
you’ve exhausted your registered options, a non-registered account can supplement your retirement savings and
help you reach your goals faster.
What’s the difference between registered and non
The chart below outlines the main differences between non
registered accounts and
popular registered accounts like RRSPs and TFSAs.
|Is there a minimum age?
||No, but you must have earned income and have filed a tax return
to own a plan , but no minimum on the annuitant. Or 16 for non registered segregated funds, if purchased through a life insurance company.|
|Is there a maximum age?
|Is there an annual contribution limit?
||18% of your earned income up to a maximum of $30,780 in 20232
||$6,5003 in 2023
|Do contributions reduce taxable income?
|Are withdrawals taxed?
|Are investment gains and losses taxable?
|Can you name a beneficiary?
||No, but certain investments within the account can have a beneficiary. Segregated
funds, as an exception, must have a named beneficiary.
1 You can contribute to your own RRSP until December 31 of the year that you turn 71. You can
contribute to a spousal RRSP until December 31 of the year that your spouse turns 71. RRSPs must be
converted to a Registered Retirement Income Fund RRIF by December 31 of the year that you turn 71.
2 Since unused contribution room carries forward, you may be eligible to contribute more than
the annual maximum. To find out your individual RRSP limit for the current year, check your most recent
Notice of Assessment from Canada Revenue Agency CRA . Annual contribution limits are also reduced by any existing pension
adjustments from an employer sponsored pension plan. Your limit may be less
than 18% if you contribute to a company pension plan.
3 Anyone who was 18 or older in 2009, and has not yet contributed, will have $88,000 of
contribution room available in 2023.
What are the benefits?
Bringing you more flexibility, non
registered investment accounts allow you to
save as much as you want, when you want. You can withdraw any amount at any time and use the funds for whatever
you’d like be mindful that with a non registered segregated fund, capital gains or losses may occur every time you move
out of a fund . You can also choose from all types of investment options like mutual funds, segregated funds, stocks, bonds and more to diversify your portfolio and give your savings an added boost.
Think you want to get started with a non-registered investment account?
Show me why I should an NRSP
with Co operators
I'd rather explore registered
The information contained in this report was obtained from sources believed to be reliable;
however, we cannot guarantee that it is accurate or complete and it should not be considered personal taxation
advice. We are not tax advisors and we recommend that clients seek independent advice from a professional tax
advisor on tax related matters. Mutual funds are offered through Co Financial Investment Services Inc.
to Canadian residents except those in Quebec and the territories. Segregated funds and annuities are
administered by operatorsCo Life Insurance
Company. operatorsCo Life Insurance Company and
Financial Investment Services Inc. are committed to protecting the privacy, confidentiality, accuracy and
security of the personal information that we collect, use, retain and disclose in the course of conducting our
business. Please refer to our operatorsprivacy
policy for more information.