RRSP and TFSA
Which metals can go in an RRSP or TFSA?
Most physical things cannot be held in a registered plan. Canadian tax rules allow certain gold and silver coins, bars and certificates. Here is what they are, and how common products measure up.
1. Coins
A legal tender bullion coin made by the Royal Canadian Mint. Its price may not be more than 110% of the value of the metal in it, so collector and proof coins usually fail.
2. Bars
A bar, ingot or wafer made by a refiner accredited by the London Bullion Market Association, stamped with the refiner, the purity and the weight.
Minimum purity
- Gold99.5%
- Silver99.9%
Platinum and palladium do not qualify at any purity.
Where the plan buys matters too. The coin or bar must be bought from the Royal Canadian Mint or the refiner, or from a Canadian bank, trust company, credit union, insurance company or registered securities dealer. Certificates issued by the Mint or one of those companies qualify on the same terms.
Source: Canada Revenue Agency, Income Tax Folio S3-F10-C1, paragraphs 1.51 to 1.54. The same rules cover RRSPs, RRIFs, TFSAs, RESPs and FHSAs. Each trustee decides which products it will hold, so ask before the plan buys.
Can qualify
| Product | Purity | Why | Melt value now |
|---|---|---|---|
| Canadian Gold Maple Leaf (1 oz) | 99.99% | Qualifies: Royal Canadian Mint bullion coin | — |
| Canadian Silver Maple Leaf (1 oz) | 99.99% | Qualifies: Royal Canadian Mint bullion coin | — |
| Gold bar (1 oz) | 99.99% | Qualifies if the refiner is LBMA accredited | — |
| Gold bar (1 kilogram) | 99.99% | Qualifies if the refiner is LBMA accredited | — |
| Silver bar (10 oz) | 99.9% | Qualifies if the refiner is LBMA accredited | — |
| Silver bar (100 oz) | 99.9% | Qualifies if the refiner is LBMA accredited | — |
| Silver bar (1 kilogram) | 99.9% | Qualifies if the refiner is LBMA accredited | — |
Does not qualify
Connecting to price feed… Melt value is the metal only. Dealers charge more than melt to sell, and pay less to buy back.
“RRSP eligible” on a product is a sales phrase: the Canada Revenue Agency does not approve individual products. A product in the first table still fails if it is bought from the wrong seller, or if a coin is priced more than 10% over its metal. If a plan buys something that does not qualify, the plan holder can owe a tax of 50% of its value.