Tax Benefits

• Dividends, interest, and capital gains earned in a TFSA are 100% tax-free

• Tax deductions for contributions
• Interest earned on RRSP investments are tax-free

Access to your funds

• Withdraw funds at any time tax-free
• Money withdrawn from a TFSA can be added back in the future

• Withdraw funds at any time but pay tax on those funds
• Money withdrawn from an RRSP can’t be re-added unless it’s part of a particular program, such as the government Home Buyer’s Plan or Lifelong Learning plan

Lifespan

• TFSA’s never expire

• RRSPs must be converted to a RRIF or annuity before December 31 of the year when you turn 71

Contribution Limit

• The current annual contribution limit is $6,500. Unused contribution space carries forward to the following year

• The current annual RRSP contribution limit is 18% of your taxable income, to a maximum of $30,780
• Unused contribution space carries forward to the following year

Spousal Plan

• Not available

• You can contribute directly to a spousal RRSP