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


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.