Please forward this error screen to 23. Click here to see more personal finance questions answered. Q: I pay a few thousand dollars in monthly investment management fees tax deductible cra to the various RRSP funds that I have—all with one institution and at a preferred rate.
Since these fees are to earn money, are they an allowable tax deduction? A: Fees paid to a financial institution may be tax deductible, Jerry. It depends on the nature of the fees. I assume you are referring to mutual funds or pooled funds held in your RRSP accounts.
Fees paid for RRSPs, whether embedded fees in your funds or fees charged separately to your account for investment management are specifically not tax deductible. If you pay an annual administration fee, this too is not eligible for a tax deduction. This lack of tax deductibility applies for all registered accounts, whether an RRSP, LIRA, RRIF, LRIF, LIF, etc. This applies to investment fees as well as interest costs. That’s why interest on an RRSP loan isn’t tax-deductible, but interest on a loan to invest in a non-registered account may be. According to the Canada Revenue Agency, you can deduct fees for only specific types of investment advice.