RRSPs: Investment Eligibility
  1. RRSPs: Introduction
  2. RRSPs: The Benefits
  3. RRSPs: Eligibility
  4. RRSPs: Contributing - Part 1
  5. RRSPs: Contributing - Part 2
  6. RRSPs: Investment Eligibility
  7. RRSPs: Growth
  8. RRSPs: Withdrawals
  9. RRSPs: RRIFs
  10. RRSPs: Registered Plan Strategies
  11. RRSPs: Conclusion

RRSPs: Investment Eligibility

What Investments Are Allowed?
For the average person, most investments can be held in an RRSP. However, the government doesn't let every investment sit under the tax-sheltered, tax-deferred umbrella of an RRSP.

The following are eligible for your RRSP account:

Shares Debt Trusts Contracts Precious Metals
Stocks Debt Obligations (Bonds) Unit Trusts
(Income Trusts)
Rights, Warrants, Options Investment Grade Gold & Silver Bullion
Funds of Stocks (i.e. mutual funds) Mortgages Royalty Units Depository Receipts Investment Grade Gold & Silver Coins
Shares of Small Business Corporations Installment Receipts Partnership Units Annuity Contracts

What Investments Are Not Allowed?
Although RRSPs allow Canadians to hold a wide variety of investments, you can't hold everything under the sun in your RRSP. Here are items that are not eligible as investments for your RRSP account:


Ineligible RRSP Investments
Employee options to purchase stock
Gold, silver and other precious metals
Commodity futures or contracts
Listed personal property such as works of art & antiques
Gems and other precious stones
Land
Bonds where the issuer is a wholly-owned subsidiary and the shares of its parent are not listed on a Canadian stock exchange
Mortgages on commercial properties owned by you or a family member
Small business investments
Puts and uncovered call options
Bonds or debentures of a company whose shares are listed only on a prescribed foreign stock exchange, even though the company\'s shares may be qualified
Source: Canada Revenue Agency


Foreign Content Rule
In addition to the above, RRSP holders were previously not able to hold more than 30% foreign property in their RRSP account. However, this restrictions was eliminated for the 2006 tax year.

RRSPs: Growth

  1. RRSPs: Introduction
  2. RRSPs: The Benefits
  3. RRSPs: Eligibility
  4. RRSPs: Contributing - Part 1
  5. RRSPs: Contributing - Part 2
  6. RRSPs: Investment Eligibility
  7. RRSPs: Growth
  8. RRSPs: Withdrawals
  9. RRSPs: RRIFs
  10. RRSPs: Registered Plan Strategies
  11. RRSPs: Conclusion
RELATED TERMS
  1. Self-Directed RRSP

    A type of RRSP (Registered Retirement Savings Plan) whose owner ...
  2. Registered Retirement Savings Plan - RRSP

    A legal trust registered with the Canada Revenue Agency and used ...
  3. Registered Retirement Savings Plan Contribution - RRSP Contribution

    Assets invested in an RRSP. RRSP contributions can be made at ...
  4. Registered Retirement Savings Plan Deduction Limit - RRSP Deduction Limit

    The maximum amount that the Canada Revenue Agency (CRA) allows ...
  5. Registered Retirement Savings Plan Deduction - RRSP Deduction

    The amount that a Canadian taxpayer contributes to his or her ...
  6. Matured RRSP

    A Canadian retirement savings vehicle that is registered with ...
RELATED FAQS
  1. Is a Registered Retirement Savings Plan (RRSP) taxable in the U.S.?

    Learn how the IRS treats Canadian Registered Retirement Savings Plans that are held by U.S. citizens or residents, and discover ... Read Answer >>
  2. 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 >>
  3. Should a Canadian citizen who lives and works in the U.S. continue to contribute ...

    No, a U.S. resident should not contribute to a RRSP account. RRSP contribution rules allow you to contribute a certain percentage ... Read Answer >>
  4. How does a Registered Retirement Savings Plan (RRSP) loan work?

    Discover some of the most common and useful ways to take out a loan from your Registered Retirement Savings Plan without ... Read Answer >>
  5. What are the main reasons not to get a Registered Retirement Savings Plan (RRSP)?

    Find out some of the reasons why you might want to reconsider opening up a Registered Retirement Savings Plan and instead ... Read Answer >>
  6. What should you consider before taking a loan on your Registered Retirement Savings ...

    Learn about the primary factors you should consider before deciding to take out a loan from your Registered Retirement Savings ... Read Answer >>

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