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A non-registered account is a type of investment account where any income generated, such as interest, dividends, or capital gains, is subject to taxation in the year it is earned. This means that investors within a non-registered account must report and pay taxes on their earnings during their annual tax filings, unlike registered accounts such as RRSPs or TFSAs, which offer tax advantages for retirement savings.

In a non-registered account, there are no specific limitations on the types of investments that can be held, which allows for a broad range of assets, including stocks, bonds, and mutual funds. This flexibility is one of the key characteristics that differentiates non-registered accounts from those that provide tax benefits.

While some other account types focus on specific regulations or restrictions, such as tax advantages or investor qualifications, this option correctly highlights the primary feature of a non-registered account concerning taxation.