Discount Brokerage

A Self-Directed RSP ("SDRSP") gives you the freedom to build and manage your own investment portfolio by buying and selling a wide variety of different types of investments. It also allows you to purchase conservative investments such as Canada Savings Bonds (CSBs), Government of Canada and provincial T-Bills, and GICs issued by a variety of financial institutions, and get just one consolidated statement every month.

You should consider this type of RSP if:

• You have the time and the knowledge to manage your own investments, or you have access to professional investment advice.
• 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.

The plan can hold a wide range of qualified investments, such as:

• Load and no-load mutual funds.
• Eligible GICs from different financial institutions.
• Canadian fixed-income securities, including Government of Canada and provincial treasury bills, bonds, debentures, strip bonds and Canada and Provincial Savings Bonds.
• Canadian exchange-listed common and preferred shares.
• Foreign equities, mutual funds and fixed-income securities.
• Eligible options to purchase eligible securities.
• Eligible TD guaranteed investment certificates (GICs) and competitive term deposits.
• Qualified mortgages.
• Cash Deposits and more.

With a Self-Directed RSP you have the opportunity to tailor your portfolio. Your plan is administered by TD Waterhouse Canada Inc., which charges an annual administration fee of $100.00 plus GST or HST.

Basic SDRSP

The TD Waterhouse Discount Brokerage Basic RSP* is a low-cost, self-directed plan designed to meet the needs of investors who want to hold some of the most popular registered plan investments. They include load and no-load mutual funds, GICs, money market instruments, Canada and Provincial savings bonds, corporate and government issued bonds, strip bonds, mortgage-backed securities and cash. However, you cannot hold equities, options or mortgages in the Basic RSP.

Your Basic RSP plan is administered by TD Waterhouse Canada Inc., which charges an annual administration fee of only $25 + GST or HST.

With either our Self-Directed RSP or our Basic RSP, maintain a minimum balance of $25,000 in your account and don't pay an administration fee! Waiver not applicable to clients electing to pay administration fee from outside their registered account.

* Refers to the TD Waterhouse Self-Directed Retirement Savings Plan.

Monthly Contribution Plan

TD Waterhouse Discount Brokerage offers a Monthly Contribution Plan which allows customers to make contributions to their SDRSP by direct debit from a bank account, on a monthly basis. There is no additional charge. Regular plan administration fees apply.

Contributions can be debited from a chequing account set up with any financial institution. A void cheque must be submitted. 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.

Changes or cancellations to the plan can be made by requesting a change with a TD Waterhouse Investment Representative at least 48 hours prior to the contribution withdrawal.

SPOUSAL PLANS

Tax Planning with Spousal Plans

Spousal plans can be set up to split income for the purpose of saving on taxes in the retirement years. The contributing spouse or partner is usually the higher income earner. The object is to shift RSP assets into the hands of a 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. Contributions can be made to the plan of a spouse or partner, who is aged 71 or younger, for the purpose of continuing 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. The spousal designation does not automatically give the contributing spouse Power of Attorney or Trading Authority over the account. This must be specified on the Application form and the applicable authorization form completed. 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 have the tax receipt completed in the correct name. Contributions to a spousal plan will be designated as ‘spousal’ unless otherwise advised by the client.

A spousal contribution can be made from a joint bank account or a TD Waterhouse non-registered trading account by contacting a TD Waterhouse Investment Representative. Online contributions made to a spousal plan through EasyWeb or WebBroker will be designated as non-spousal and the resulting contribution receipt will be 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 Waterhouse 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.