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Planning and Advice.
Get a few tips from financial professionals.
Your goals matter to us, no matter how big or small, here are some things we can help you plan for!
- Rainy day fund
- Pursuing an education
- Buying a home
- Long and short-term savings goals
- Buying a car
- Estate planning
- retirement planning
- retirement income funds
Here are a few quick tips for deciding where to save - TFSA vs RRSP
Which type of account suits your needs best?
What is the account going to be used for?
TFSA
General savings, retirement savings, home purchase, continuing education.
RRSP
Retirement savings, home purchase, continuing education.
How much can I contribute?
TFSA
Up to $7,000 in 2024.
RRSP
Up to 18% of the income you earned in the previous year. (up to a maximum of $27,230 for 2020 tax year and $29,210 for 2021)
Can I delay contributions until a later date?
TFSA
Yes, unused contribution room can be carried forward.
RRSP
Yes, unused contribution room can be carried forward.
Can I deduct contributions from my income tax?
TFSA
No.
RRSP
Yes, an RRSP contribution can reduce the income tax you pay.
What can I invest in?
TFSA
A wide range of investments.
RRSP
A wide range of investments.
Will my investments be taxed as they grow?
TFSA
No.
RRSP
No.
Will I be taxed when I withdraw money?
TFSA
No.
RRSP
Yes, on both your original contributions and the money you’ve earned; however, by the time you withdraw money from your RRSP, your income may be lower, so you'll be taxed at a lower rate.
Can I recontribute amounts that I withdraw?
TFSA
Yes, withdrawn amounts can be contributed in future years.
RRSP
Yes, if you have available contribution room in the year you wish to recontribute.
At what age can I start saving?
TFSA
At 18 years of age.
RRSP
If you have an earned income subject to Canadian taxation you can contribute at any age and keep doing so until you are 71 years of age.
When do I have to cash out?
TFSA
No requirement.
RRSP
In general, your RRSP must be converted to a Registered Retirement Income Fund (RRIF), annuity or other income option at age 71, and you must make minimum taxable withdrawals; you can also simply deregister your RRSP savings, although this may result in unwanted tax consequences.
Do I pay taxes on these funds?
TFSA
No, because TFSA withdrawals don't count as income.
RRSP
Maybe, RRSP withdrawals count as income; the extra income could reduce the amount you get from some “income-tested” benefits.
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