What's the difference between an RRSP and a TFSA?
What's the difference between an RRSP and a TFSA?
Whether you go for an RRSP, a TFSA, or both, contribute every season to reach your goals—big and small

RRSP vs. TFSA: How do they compare?
Registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs) are attractive because they allow you to build your savings in a tax-sheltered environment. RRSPs can help you save for retirement and reduce your taxable income when you contribute. TFSAs are a flexible way to save for any type of project and cover any unexpected expenses. Combine both plans to maximize their benefits all year long.
RRSP
For life's milestones
-
Plan for retirement
-
Buy your first home
-
Finance a return to school
TFSA
For projects and unexpected expenses
-
Achieve your goals
-
Build an emergency fund
-
Top up your retirement savings
RRSP | TFSA | |
---|---|---|
Minimum age | No minimum age, as long as you earned income during the previous year | Age 18 |
Maximum age | Age 71 | None |
Contribution limits
RRSP
Contribution deadline
For the 2020 tax year: March 1, 2021
Annual contribution limit
18% of the income you earned the previous year, up to the maximum for the current tax year:
- 2020: $27,230
- 2021: $27,830
Participation in an employer-sponsored pension plan reduces your RRSP contribution room.
Unused contribution room
This is the unused portion of your maximum annual contribution that has accumulated since 1991 and that you can carry forward to future years.
Excess contributions
Limit of $2,000 over your available contribution room.
Penalties apply beyond this amount.
TFSA
Contribution deadline
December 31 of the current year
Annual contribution limit
- 2009 to 2012: $5,000
- 2013 and 2014: $5,500
- 2015: $10,000
- 2016 to 2018: $5,500
- 2019 to 2021: $6,000
Unused contribution room
This is the unused portion of your maximum annual contribution that has accumulated since 2009 and that you can carry forward to future years.
Excess contributions
Not permitted.
Want to contribute to your spouse's plan?
For RRSPs, you can contribute to your spouse's plan and have the contribution deducted from your taxable income, even if you aren't the beneficiary.
For TFSAs, you can't contribute to your spouse's account. But you can give your spouse money to invest in their TFSA.
Ready to contribute?
Go to AccèsD to make a contribution and set up automatic transfers.
Contribute online - to an RRSP or TFSA. This link will open in a new window.RRSP | TFSA | |
---|---|---|
Contributions are deductible from your taxable income | Yes | No |
Withdrawals are taxed | Yes | No |
Investment income becomes taxable when withdrawn | Yes | No |
Taxation at death | Yes. Unless your RRSP is transferred to your spouse, to a minor dependent child or to a dependent disabled child, through your will or otherwise. | No. Your spouse can add your balance to their TFSA after your death without affecting their contribution room. |
RRSP or TFSA: Ready to choose?

Registered retirement savings plans
Find out more about the benefits of RRSPs and how you can use them to meet your goals.

Tax-free savings accounts
See how the flexibility of TFSAs can help you complete your projects in the short and medium term.
3 advantages of contributing all year long
Adopt good savings habits to put money aside all year long without breaking a sweat!
FAQ – RRSP vs. TFSA
- Withdrawals from an RRSP are subject to tax deductions, and withdrawal fees may apply.
- Withdrawals of deliberate over-contributions, non-qualified investments and asset transfer transactions, and any income attributable thereto, do not create additional TFSA contribution room. Some of these types of income may be subject to a 100% taxation rate.