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Compare TFSAs and RRSPs

TFSAs and RRSPs are complementary registered savings plans.

  • RRSPs are designed to meet your needs at retirement. Find out more about RRSPs

  • Non-taxable withdrawals make TFSAs a good tool to help you meet any other particular needs: buying a car, renovating your home, starting a business or taking a trip. It is also useful when your RRSP is no longer a way for you to save on taxes. Find out more about TFSAs

Example

You need $20,000 to renovate your kitchen.

  • With a TFSA, you may withdraw the money from your account and you won't pay taxes on it. You can put the money back into your TFSA later.

  • You may also withdraw the money from your RRSP but you would have to withdraw up to $37,000 to cover your renovations (depending on your marginal tax rate) and the applicable income taxes. You would also lose your contribution room.

 
TFSA
RRSP
Age limit
None
The year of your 71st birthday.
Maximum contribution
$5,000 in 2009
18% of income earned the preceding year, up to $21,000 in 2009.
Contributions income tax deductible?
No
Yes
Withdrawals
Non-taxable
Taxable
Investment income taxable?
No
No
Impact of withdrawals on benefits from social programs
None
Added to taxable income.
Do withdrawals increase contribution room?
Yes, equal to the amount withdrawn and added to the contribution room for the following year.
No
Contributions to spouse's account allowed?
No. However, money you give your spouse to contribute to a TFSA is not subject to attribution rules.
Yes, the contributing spouse benefits from the reduction in the calculation of their taxable income, even if they are not the beneficiary.
Taxable upon death?
No. Amounts generated prior to death can be rolled over to the spouse tax-free.
Yes, except if rolled over to spouse, or to minor or disabled child.
Can it be used as collateral for a loan?
Yes
Yes
Over-contributions allowed?
No
Yes, up to $2,000

For more information
By phone By phone
Montreal area: 514-522-2373
Elsewhere in Canada and the US: 1-800-CAISSES (1-800-224-7737)
At the caisse At the caisse
Make an appointment with a caisse advisor: