RRSPs: Investment Eligibility
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:
|Stocks||Debt Obligations (Bonds)||Unit 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|
|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.