Self-Directed RRSP


DEFINITION of 'Self-Directed RRSP'

A type of RRSP (Registered Retirement Savings Plan) whose owner determines the asset mix held in the trust. An RRSP is a Canadian retirement savings vehicle to which contributions are tax deductible on an annual basis, up to a certain amount. With a self-directed RRSP, an investor can determine the portfolio of investment products in his or her RRSP. Investments that are not RRSP eligible, however, are sill not allowed in a self-directed RRSP.


Aside from the tax advantage provided by the Canadian federal government, a self-directed RRSP account is very similar to a regular investment account.

Owners of self-directed RRSPs are responsible for ensuring that their RRSP investments meet the legal requirements set by the Canada Revenue Agency. The penalty for not meeting these requirements is the loss of the income tax deduction.

To learn more about RRSPs, check out How are Registered Retirement Saving Plans (RRSPs) taxed?

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