RRSPs: Investment Eligibility
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  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
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