Non-Registered Investment Accounts in Ontario – Dave Financial Services Inc.
We help clients across Ontario, Canada build wealth beyond the limits of RRSPs, TFSAs, or FHSAs with non-registered investment accounts. If you've maximized your registered savings or are looking for flexible, unrestricted investment options, a non-registered account offers powerful advantages.
Unlike registered accounts, a non-registered investment account does not provide tax-sheltered growth. However, it offers unlimited contribution room, full access to funds, and a broad range of investment choices. These accounts are ideal for those seeking supplemental income, tax diversification, or short- and long-term investment options without government restrictions.
What Is a Non-Registered Investment Account?
A non-registered account is a taxable investment account that allows Canadians to invest in various assets without contribution or withdrawal limits. While it doesn’t offer the same tax advantages as registered accounts like the RRSP, FHSA or TFSA, it gives investors unmatched flexibility, accessibility, and control.
You can open a non-registered account as an individual, with a spouse or partner (joint account), or even through a corporation or trust for business and estate planning purposes. These accounts are well-suited for investors who:
- Want to invest beyond registered account limits.
- Need liquid access to their funds.
- Are focused on long-term wealth accumulation.
- Prefer no age-based contribution or withdrawal restrictions.
Key Features & Benefits
Non-registered investment accounts offer a wide range of features that make them suitable for many financial strategies:
- No Contribution Limits: Invest as much as you want—no annual or lifetime caps.
- No Age Restrictions: Available at any age with no age-based conversion rules.
- Broad Investment Flexibility: Choose from stocks, bonds, ETFs, mutual funds, GICs, REITs, segregated funds, and even real estate or collectibles.
- Full Liquidity: Withdraw funds anytime, for any reason, without penalties.
- Short- and Long-Term Goals: Use for emergency savings, wealth building, or goals like travel, home renovation, or early retirement.
- Supplementary Investment Tool: Ideal for high-income earners who’ve maxed out registered accounts.
- Income Splitting: Joint accounts allow for income to be shared between spouses.
- Tax-Loss Harvesting Opportunities: Offset capital gains by strategically selling underperforming investments.
Tax Implications You Should Know
With no built-in tax deferral, all income and gains in a non-registered account are taxable annually. Here's how different investment income is treated:
- Interest Income: Fully taxable at your marginal tax rate.
- Dividend Income: Eligible dividends from Canadian companies receive a dividend tax credit, making them more tax-efficient.
- Capital Gains: Only 50% of realized capital gains are taxable.
You’ll need to report all investment income, gains, and losses on your annual tax return, making record-keeping essential.
Who Should Consider a Non-Registered Account?
This type of account is a smart choice if you:
- Have maxed out your RRSP, TFSA, or FHSA contribution limits.
- Want investment flexibility without age-based rules or penalties.
- Need access to your funds for short- or long-term goals.
- Own a business and want to invest retained earnings through a corporate investment account.
- Are looking to diversify your tax exposure in retirement.
- Want to include investment accounts in your estate planning strategy.
Non-Registered vs. Registered Accounts – A Quick Comparison
| Feature | Non-Registered Account | TFSA | RRSP |
|---|---|---|---|
| Contribution Limits | None | $7,000/year (2025) | 18% of income (up to annual max) |
| Tax-Deductible Contributions | ✗ No | ✗ No | ✓ Yes |
| Tax-Free Growth | ✗ No | ✓ Yes | ✓ Yes (until withdrawal) |
| Tax-Free Withdrawals | ✗ No | ✓ Yes | ✗ No (taxed on withdrawal) |
| Penalties for Overcontribution | ✗ No | ✓ Yes | ✓ Yes |
| Withdraw Anytime? | ✓ Yes | ✓ Yes | ✗ Limited exceptions |
Final Thoughts: Is a Non-Registered Account Right for You?
In essence, non-registered investment accounts offer a flexible and accessible way to grow your money—but require careful planning to manage tax implications. They are excellent tools for diversifying your investment strategy, especially if you’ve maximized registered options or want open access to your funds.
At Dave Financial Services Inc., we help individuals, couples, and business owners in Ontario build personalized investment plans that combine registered and non-registered accounts for optimal growth, tax savings, and peace of mind.