Compare RRSPs and TFSAs

RRSPs and TFSAs are registered savings plans that allow you to save money tax-free.

There may, however, be exceptions to these rules. For example:

• TFSAs may be better than RRSPs to save for retirement.
• Borrowing from your RRSP to buy a home through the Home Buyer's Plan is often a very effective strategy.
• A TFSA may also be useful when you have contributed the maximum to your RRSP and are seeking an additional tax deduction.

Determining which plan is better for you can be complex. Discuss it with your Desjardins advisor.

RRSP and TFSA comparison chart

	RRSP	TFSA
Contribution deadline	February 29, 2012	January 1 to December 31 of current year
Age limit	The year of your 71st birthday	No
Contribution amount	18% of income earned the preceding year, up to $22,450 in 2011 and $22,970 in 2012	Up to $5,000 per year since 2009 for everyone
Are contributions income tax deductible?	Yes	No
Withdrawals	Taxable	Non-taxable
Investment income	Non-taxable	Non-taxable
Unused contribution room	The unused portion of your maximum annual amount deductible since 1991	The unused portion of your maximum allowable contributions since 2009
Excess contributions	Up to $2,000 above the maximum allowable annual contribution	Not allowed
Impact of withdrawals on benefits from social programs	Added to taxable income.	None
Do withdrawals increase contribution room?	No	Yes, equal to the qualifying amount withdrawn1 and added to the contribution room for the following year.
Are spousal contributions allowed?	Yes. The contributing spouse claims the tax deduction even if he or she not the beneficiary.	No. However, money you give your spouse to contribute to a TFSA is not subject to attribution rules.
Taxable upon death?	Yes, except if rolled over to spouse, or to minor or disabled child.	No. Amounts generated prior to death can be rolled over to the spouse tax-free.
Can it be used as collateral for a loan?	No	Yes

RRSP and TFSA--eligible investments

Choose from our wide range of savings products to invest in your TFSA and RRSP plans.

Type of investments	RRSP	TFSA
Regular Savings Account
Tax-Free Savings Account
Guaranteed fixed-rate investments
Market-linked guaranteed investments
Desjardins Funds
Guaranteed investment funds contract (Helios)
Market-traded productse
Desjardins permanent shares
Surplus shares

	Online	Fill out the form
	By phone	Montreal area: 514-CAISSES (514-224-7737) Elsewhere in Canada and the U.S.: 1-800-CAISSES (1-800-224-7737)
	At the caisse	Make an appointment with a caisse advisor: online by phone

1. Following changes recommended by Finance Canada, withdrawals of overcontributions, non-qualified investments and amounts attributable to swap transactions, or of any related investment income, do not create additional TFSA contribution room. Some of this income will be taxed at 100%.