Paying Fees for RRSP/TFSA Accounts From Non-Registered Accounts

Back in December 2016, the CRA announced that it considered the payment of fees for registered accounts from non-registered accounts as an “advantage” and would tax accordingly, starting in 2018. They have now changed their minds.

The background scenario went like this: that 2018 implementation date was put off ‘til January 2019. Then in September 2018, the CRA announced that the change would be put on hold indefinitely until they had heard back from the Department of Finance. 

On August 26, 2019, in a “Finance comfort letter,” the Finance Canada Policy Branch indicated that it would recommend that the minister amend the definition of “advantage” in the Income Tax Act to exclude the payment of fees for RRSPs/RRIFs/TFSAs from outside the accounts. 

This means there will be no income tax consequences to the normal practice of paying fees for registered accounts from non-registered accounts.

Continuing to create wealth in times of change is an important topic, especially in light of the upcoming election and a variety of economic uncertainties. It’s one that will be covered by Knowledge Bureau President, Evelyn Jacks in her keynote session that will open the 2019 Distinguished Advisor Conference taking place in Puerto Vallarta November 10-13. There’s still time to register to attend and learn about the tax and policy changes that impact the work that tax and wealth advisors do at such an integral time.

Additional educational resources: For an online learning opportunity, enrol in the MFA™- Retirement and Succession Services Specialist program. You can save $100 by enroling in a designation program (or $100 off a diploma) when you do so by October 31!

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