CIRE Exam Element 4: Account Types and Registration

CIRE Element 4: Account Types

Understanding different account types is essential for making suitable recommendations. This guide covers all account types on the CIRE exam.

Registered Accounts

RRSP (Registered Retirement Savings Plan)

• Contribution limit: 18% of previous year's earned income
• Maximum: Annual limit set by CRA
• Tax treatment: Contributions deductible, growth tax-deferred
• Withdrawals: Taxed as income
• Deadline: 60 days after year-end

TFSA (Tax-Free Savings Account)

• Contribution limit: Annual limit set by CRA
• Tax treatment: No deduction, but growth and withdrawals tax-free
• Withdrawals: Added back to room following year
• Age requirement: 18+ (varies by province)

RESP (Registered Education Savings Plan)

• Lifetime limit: $50,000 per beneficiary
• CESG: 20% government grant (up to $500/year)
• Beneficiary: Child for post-secondary education
• Withdrawals: EAPs taxed in student's hands

RRIF (Registered Retirement Income Fund)

• Conversion: Must convert RRSP by age 71
• Minimum withdrawals: Required annually
• Tax treatment: Withdrawals taxed as income

Non-Registered Accounts

• Cash accounts
• Margin accounts
• Joint accounts (with rights of survivorship or tenants in common)
• Corporate accounts
• Trust accounts

Account Documentation

• New Account Application Form (NAAF)
• KYC documentation
• Account agreements
• Risk disclosure documents

Key Exam Topics

• Contribution limits and deadlines
• Tax implications of each account
• Suitability factors for account recommendations
• Transfer rules between accounts
• Documentation requirements