Non-registered account types
Non-registered accounts, also known as taxable investment accounts, are not registered with the federal government of Canada. They do not have limits to contributions or withdrawals, which makes them flexible. Withdrawals from non-registered accounts are not taxed. However earned income (interest, dividends) and realized capital gains must be included as taxable income each year.[1]
The following are the two main non-registered account types in a discount brokerage context:
Non-registered accounts are often opened and used by investors once they have reached contribution limits for their registered accounts. Non-registered brokerage accounts can also be used to store savings such as emergency funds.[2]
Non-registered investment accounts are also offered by mutual fund companies, and other investment dealers.
See also
References
- ^ Ontario Securities Commission, Investors and tax, updated September 26, 2023, viewed October 26, 2023.
- ^ Robb Engen, What Is A Non-Registered Account And How Does It Work?, August 28, 2022, viewed October 26, 2023.