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Registered Accounts

Our self-directed registered plans allow you to accumulate savings sheltered from taxes, invest using a wide choice of vehicles and receive retirement revenue in the manner that suits your needs.

The self-directed registered plans are available at Laurentian Bank Discount Brokerage:

Eligible Investments

LBDB gives you access to wide choice of investments for a diversified portfolio. You may consult a complete list in Investment Types. While self-directed plans are recognized for their great flexibility, certain investments are not eligible. For example, shares traded on U.S. over-the-counter markets, short call options and short put options, employee options to purchase stock, most precious metals, listed personal property such as works of art and antiques, gems and other precious stones may not be included. For a complete list visit the Canada Revenue Agency (CRA) website.

Consolidation

There are several reasons to consolidate your plans with Laurentian Bank Discount Brokerage:

  • You save
    When the balance of your RRSP account is greater than $25,000, annual administrative fees do not apply. Consolidating the RRSP accounts that you hold in other financial institutions with LBDB allows you to benefit from this waiver of fees. Consult Miscellaneous Fees on this topic. When you transfer your accounts to LBDB, the transfer fees are reimbursed up to $100 plus taxes.
  • You simplify the management of your registered plans
    Account statements and revenue statements arrive from one source, which allows you to consult and plan your RRSP investments much more easily.

There are no longer any limitations on investing in foreign securities in your registered accounts .

The competitive interest rate paid monthly on the cash balance is calculated on the average daily balance for the month and is paid to the account the 25th of each month. Consult Interest Rates.

Before making a purchase, you must ensure that you have the cash available in the account to cover the entire transaction; otherwise a sale will have to take place first.

Only purchases of call options and the covered sales of call options are permitted in self-directed registered accounts.


(Application Form)

The TSFA is a registered savings account offered by the Canada Revenue Agency. The TFSA allows you to accumulate tax-sheltered savings. That is, income earned from your investments (interest, dividends and capital gains) aren't taxable and never will be, even if you withdraw amounts accumulated in your TFSA. And that's not all: anytime you make a withdrawal from your TFSA, you'll recover your contribution room in subsequent years.

All Canadian residents aged 18 years and older can invest up to $10,000 per year in a TFSA.

To learn more about the TSFA


(Application Forms)

Flexibility of the Plan

The self-directed RRSP allows you to defer taxation and benefit from after-tax returns for contributions made until you decide to use your savings. Contributions must be made in the form of cash or securities. For more information, see How to Make a Deposit to the Account.

You may also make substitutions and withdrawals or use a portion or all of the funds accumulated in your RRSP for the Home Buyers’ Plan or to finance your continuing education.

Recurring Contributions

If you want to contribute to your RRSP regularly, for example once per month, you may take advantage of the monthly contributions program with Systematic Withdrawals or invest in an investment mutual fund of your choice, according to the frequency that suits you (frequency varies according to the family of funds). At your request, a representative will set up one of these services.

Other Registered Accounts

The RRSP can take a variety of forms such as the spousal RRSP or the Locked-In Retirement account. As well, the holder of an RRSP must plan for its conversion to an account specifically designed to turn the capital accumulated into retirement income. The conversion of an RRSP must take place by December 31 of the year the holder turns 71. Consult the descriptions that follow for more information on other registered accounts.


(Application Forms)

Subscription, Deductions and Taxation

The self-directed RRSP may be subscribed to by the spouse to increase its effectiveness from a fiscal point of view. Subscriptions to the plan are deducted from the revenue of the subscribing spouse even if this account is solely in the name of the other spouse (the annuitant). When the time comes to draw retirement revenue from the plan, the annuitant rather than the subscriber adds this revenue to the total annual taxable income.

Tax Deferral

An important characteristic of the spousal plan is the requirement that withdrawals begin at age 71; this applies to the annuitant and not to the subscriber of the plan. The beginning of withdrawals can be delayed until the younger of the spouses reaches the age of 71, making it possible to shelter the investments for a few more years.

Income Splitting

Another characteristic of the RRSP - Subscriber that is as important as tax deferral is income splitting. The Canadian tax system is organized so that the tax rate increases with income. The fact that income is taxed at the marginal tax rate is an important notion to consider when developing a retirement plan. Because income is taxed in the hands of the annuitant, it is preferable (for the same amount accumulated and when the situation permits) to receive this revenue from two plans at a lower rate of taxation rather than to receive it from a single plan at a higher rate of taxation.


(Application Forms)

The LIRA makes it possible for individuals who change jobs to transfer the funds accumulated from a federal pension plan or from a pension fund under provincial authority. Anyone who leaves a job after two years of participating in a pension plan can transfer his or her contributions to an LIRA.

When the account is opened, it is important to specify if the pension fund is under federal or provincial jurisdiction and, in the case of provincial jurisdiction, whether it is under the jurisdiction of the province of Quebec or Ontario. You will find the various options as well as the respective forms to open an account to set up the LIRA that suits your needs in Application Forms.

Contributions are not allowed for this type of account.

This account must be converted to a life income fund (LIF) or a life annuity by December 31 of the year that the annuitant reaches the age of 71.


(Application Forms)

The RRIF is the continuation of the RRSP; however, contributions cannot be made to it. This account is used to transform capital accumulated over the years into retirement income. While it is possible to transform an RRSP into an RRIF at any time, it must be done by December 31 of the calendar year the holder turns 71. The transfer from one account to another does not change the investments that you hold, but in order to provide for your retirement payments, you should ensure that you have the required cash assets available in your account when the time comes.

When you convert your RRSP to a RRIF, there are no tax implications, in other words no tax is charged during this transaction. However, the retirement payments that you receive should be added to the revenue for the year in which they were received. You should withdraw a minimum annual amount, which is determined according by a calculation that takes into account the age at which you start to receive income from your RRIF and other factors. At Laurentian Bank Discount Brokerage, you may receive your retirement income annually, semi-annually, quarterly or monthly, as long as you respect the prescribed minimum - that choice is yours.

The investments that you can make within a RRIF are exactly the same as those that you can make within your RRSP. Shares, call options, investment mutual funds, fixed-income securities and others, are all Investment Types that you can continue to use to pursue your investment planning. As mentioned, the only thing that you must ensure is that you have the cash assets necessary to cover withdrawals.

There is no age limit to open a RRIF and you can reduce the amount of the annual payment by using the age of the youngest spouse for the calculation. Upon the death of the holder, the RRIF can be transferred to the surviving spouse’s RRSP or RRIF with no taxation.

As for all other accounts offered by Laurentian Bank Discount Brokerage, the Interest Rates paid on credit balances are competitive.


(Application Forms)

The LIF is the continuation of the LIRA and as with the RRIF, contributions to it cannot be made. The account is used to transform the capital accumulated over the years into retirement income. While it is possible to transfer an LIRA into an LIF at any time, it must be done by December 31 of the year the holder turns 71. The transfer from one account to another does not change the investments that you hold, but in order to provide for your retirement payments, you need to ensure you have the required cash assets available in your account when the time comes.

The funds can come from a registered pension plan (RPP), an LIRA or other LIF accounts.

The amounts withdrawn from the LIF as income are subject to a minimum and a maximum. In the case of a federal LIF, amounts are withdrawn until the end of the year of one’s 80th birthday and at that time the balance of the account must be transferred to a life annuity. In the case of a provincial LIF, the amounts withdrawn are also subject to a minimum and a maximum and continue until the account is depleted.

The uninvested balance and cash earn competitive interest paid monthly and is calculated on the average daily balance of your account during the month.

When you open the account, you must indicate the desired method and frequency of payments.


(Application Forms)

This type of account is a tool for planning for post-secondary studies. It carries the right to government grants and shelters investment earnings from taxes.

A federal grant of 20% on the first $2500, or $500, is deposited to your brokerage account. The lifetime maximum amount of the grant is $7200. The lifetime contribution limit is $50000 per beneficiary.

In an individual plan, parents, grandparents, aunts, uncles and friends of the family may contribute to the RESP, while in the family plan there must be a family relationship (by blood) or adoptive relationship between the subscriber and the beneficiary. In the family plan, more than one beneficiary can be named. Several RESPs can be established for a child. You may change the beneficiary at any time.

While contributions are not tax-deductible, the monetary value of the plan increases faster due to the government grant and the tax exemption with respect to investment earnings. The capital may be accessed at any time.

The beneficiary can withdraw investment income and the grant beginning in the first year of full-time post-secondary studies in an authorized educational institution. These amounts will be added to the taxable income when they are paid in the form of educational assistance payments.

The RESP is not limited in terms of foreign content.

For more information on the contributions and eligible investments, please contact a customer service representative. For more information about RESPs and the CESG (Canada Education Savings Grant), visit the Canada Revenue Agency (CRA) website.


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