Non-registered Account
What is a Non-registered Account?
A Non-registered account is an account that is not registrated with the federal government, but that allows you to invest in various securities.
Why open a Non-registered Account?
No Contribution Limits
Unlike registered accounts like TFSAs or RRSPs, there are no contribution limits. This means you can put however much into the account to invest.
Easy Accessibility
Funds in non-registered accounts can be accessed at any time, offering greater liquidity compared to some registered accounts.
More Versatility
In addition to a plethora of investment opportunities such as in stocks, bonds, and fixed-income, you can also engage with margin and options more easily.c
How do Non-registered Accounts work?
Non-registered accounts serve as investment accounts but that are not registered with the government. This means you are subject to taxation as earnings.
Taxable events include selling stock (capital gains), dividend payouts, and interest gains. Taxes are reported in the same year of the such earned income on the account, but you are generally not taxed on withdrawal.
Who can open one?
You must be 18 to open a non-registered account, but there are no limitations thereafter.
Some provinces limit to 19 years of age, and it’s best to check with a provider.
Tax Treatment
Tax-Free?
Tax-Deductible?
Tax-Deferred?
Numbers to Know
Notably, the capital gains inclusion rate was raised in 2024 from 50% to 66.7%. This means 66.7% of capital gains from your investments will be considered taxable income.
On the contrary, you are not capped on contributions or withdrawals, allowing flexibility in that realm. Margin accounts are also a subset of non-registered accounts that m
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