Non-Registered Investment Account: Who Qualifies and What You Get
Learn how non-registered investment accounts work in Canada, including the tax implications for your gains, dividends, and interest.
A non-registered investment account is a type of taxable account used to hold various financial assets without the contribution limits found in other types of accounts.
Who it's for
This option is open to any investor.
What you get
You get unlimited contribution room, meaning there is no cap on how much money you can put into the account. You also enjoy significant flexibility in how you manage your investments.
What it costs you
While there are no contribution limits, you must pay taxes on your earnings. Half of your capital gains are taxable, and any dividends or interest you earn are fully taxable.
The catch to know
You are responsible for tracking your Adjusted Cost Base (ACB) for tax reporting. ACB is the average cost of your investments, which you must calculate accurately to determine your gains when you eventually sell them.
How to apply
- Choose a financial institution to act as your provider.
- Open an account through their platform or in person.
- Transfer your funds into the account to begin investing.