Non-Registered Account (Canada)

DEFINITION of 'Non-Registered Account (Canada)'

A type of investment account that allows Canadian citizens to save money for the long term. Non-registered accounts only tax the capital gains realized inside the account at 50% of the account holder's top marginal tax rate. And unlike RRSPs, non-registered accounts have no contribution limits.

BREAKING DOWN 'Non-Registered Account (Canada)'

Many financial advisors recommend using non-registered account in conjunction with RRSPs. This allows the investors to invest the tax savings generated by the RRSP into the non-registered account. There are also some cases where the investor will benefit the most from using only a non registered account. Financial analysis is often required in order to determine which type of account will provide the most benefit.

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RELATED FAQS
  1. For tax return purposes, is a savings account considered income?

  2. How are Registered Retirement Saving Plans (RRSPs) taxed?

    Learn about registered retirement saving plans, and find out how the Government of Canada provides tax benefits for those ... Read Answer >>
  3. What are the main reasons to obtain a Registered Retirement Savings Plan (RRSP)?

    Learn about some of the major benefits of opening and contributing to a Registered Retirement Savings Plan throughout your ... Read Answer >>
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