Investing

Clarification please re: RRSP & commissions

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  • Apr 6th, 2017 1:51 pm
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Deal Addict
Nov 12, 2008
1983 posts
389 upvotes
Aurora

Clarification please re: RRSP & commissions

Say I buy something in my RRSP (or TSFA) and pay a $10 commission. Since that commission comes out of my RRSP account, does that mean I lose $10 of contribution room forever?

TDDI is supposed to reimburse my commissions due to the current promotion, but where will they deposit them? If they put them back into my RRSP account won't that be considered a contribution in the eyes of CRA?
2 replies
Deal Addict
Apr 22, 2014
3097 posts
474 upvotes
Oshawa, ON
Hate to be the bearer of bad news but it's worse than you even imagined. You lost contribution room as soon as you put money in the RSP. The commission will just reduce the balance. If you get the money back or commission waived just thank Jesus for your luck.
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Deal Addict
User avatar
Feb 1, 2012
2214 posts
3798 upvotes
Thunder Bay, ON
The commission credit should be processed as a rebate not a deposit, so it will not reduce your contribution room. Check your statement or online transactions to be sure,

You use your contribution room as soon as you deposit money in an RRSP, even if you never invest it. Investment fees (commissions, MERs) will reduce your investment returns, so your results will slightly trail the returns of the indices you are following. But if you make 5 trades a year in an account with $100k that's only 0.05%. If you bought individual stocks your commissions would be higher. If you use mutual funds in an adviser managed portfolio your total cost would definitely be higher.
When I was young, I was poor. Now, after years of hard work, I'm no longer young.

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