Self-Directed RRSPs

Self-Directed RRSPs

A self-directed RRSP is a retirement savings plan registered with the federal government whereby an approved corporation usually handles the administration/custodianship of assets. The self-directed plan holder assumes responsibility for any and all investment transaction decisions for the plan. These plans have become very popular with people who like to participate in the management of their own investments.

Self-directed RRSPs are available directly from banks, trust companies and investment dealer firms. With a Member firm self-directed RRSP, the plan holder pays the Member a stipulated annual fee and enters buy and sell orders through the Member firm. This annual fee was tax-deductible until the 1996 federal budget discontinued the deductibility. No margin transactions are allowed in self-directed RRSPs. Property held in an RRSP cannot be used as collateral for a loan.