Self-Directed RSP & RIF
A Self-Directed Retirement Savings Plan (SDRSP) is a great way to save for retirement. It gives you the freedom to build and manage your own investment portfolio by buying and selling a wide variety of investments. And with this plan your investments are tax-deferred. You'll receive monthly reporting plus complete administration and safekeeping. We also offer you the ability to open a US$ component of an SDRSP plan which will allow you to hold U.S. securities and settle trades in U.S. dollars.
Retirement Income Funds (RIFs) are a convenient and flexible way to defer tax on retirement savings and maintain the purchasing power of your retirement income in later years. You can transfer savings from any number of RSPs into your Self-Directed RIF and exercise more control over the way your income is paid.
Who is it for?
An SDRSP and RIF might be a good choice for you if…
- You have the time and the knowledge to manage your own investments
- You already have a large deposit-based RSP and now wish to diversify your investments
- You already hold investment securities (e.g., stocks, bonds, etc.) which you now wish to put in a tax-deferred plan
- You want the convenience of one simple statement for your self-directed investments (TD Direct Investing SDRSP or SDRIF accounts only)
Your SDRSP1 and/or RIF1 is included in your total household2 accounts, which are charged single a quarterly Maintenance Fee of $25.00. There are a number of ways to have this Fee waived, which include maintaining household accounts totaling $15,000 or more, or completing three or more trades that incurred a commission in the preceding three months. Please refer to the Commission Schedule and Statement of Disclosure of Rates and Fees for more information.1 Administered by TD Waterhouse Canada Inc. 2 For this purpose, household accounts are defined as those TD Direct Investing accounts for clients living in the same household, with the same address. You must advise TD Direct Investing of these multiple account relationships.
Please read through these important forms and documents below.
Frequently asked questions
Monthly Contribution Plan
The Monthly Contribution Plan allows you to make contributions to your Self-Directed RSP (SDRSP) by direct debit from a bank account, on a monthly basis. There is no additional charge. Contributions can be debited from your chequing account. A void cheque must be submitted to set up automated contributions. Savings accounts cannot be used for this plan. Set-up requires the completion of the Self-Directed RSP Monthly Contribution plan authorization form, which is included with your Welcome Package; the form (#595680) is also available separately in our self-service forms and applications library.
Contribution changes or cancellations can be made by contacting a TD Direct Investing Investment Representative at least 48 hours prior to the contribution withdrawal.
Tax Planning with Spousal Plans
Spousal plans can be set up to split income to reduce on taxes in your retirement years. The contributing spouse or partner is usually the higher income earner. RSP assets are shifted into the hands of the lower income earner so that, at retirement, the income from the plan is taxed at a lower marginal rate, resulting in tax savings.
Spousal plans can also be used by a spouse or partner over the age of 71 who can no longer contribute to their own RSP. You can make contributions to your spouse or partner’s plan, who is aged 71 or younger, to tax-defer eligible income. The spouse or partner is named as a spousal contributor to a plan set up in the name of the annuitant. The beneficial owner of the plan is the annuitant. Common-law partners also qualify for spousal plans.
Contributions to a Spousal Plan
The spousal contributor is allowed to contribute to the plan, all or part, of their own contribution limit amount.
If the annuitant is entitled to make a contribution to an RSP, they may also make tax-deductible contributions to the spousal plan, but it may be preferable to set up separate plans. Contributions must be clearly designated as spousal or non-spousal in order to receive accurate tax receipts.
Spousal contributions can be made from a joint bank account or a TD Direct Investing non-registered trading account by contacting a TD Direct Investing Investment Representative. Online contributions made to a spousal plan through EasyWeb or WebBroker are designated as non-spousal and the contribution receipt is issued in the name of the plan holder.
Withdrawals from a Spousal Plan
Income Tax regulations specify a "holding" period for withdrawals in the name of the annuitant.
Withdrawals from a spousal plan are taxable in the hands of the contributing spouse or partner, to the extent that the contributions were made by the spousal contributor in the current year, and in the two (2) calendar years preceding the year of withdrawal. TD Direct Investing follows the industry standard with respect to administering withdrawals from spousal plans, and attributes all withdrawals to the spousal plan, regardless of who made the contribution.
If the withdrawal qualifies for attribution to the annuitant under the 3-year hold rule, it is the responsibility of the client to prove to Canada Revenue Agency that the spouse or partner contributor did not make the contribution.