TFSA & RRSP
Often, saving for the future involves using both TFSAs and RRSPs.
Annual Contribution Limits
$6,500
2023 TFSA
$7,000
2024 TFSA
$30,780
2023 RRSP
$31,560
2024 RRSP
TFSA & RRSP Eligible Investments
Cash & Term Deposits
Bonds, Stocks & Equities
Mutual Funds
Eligibility Age to Start Contributions
TFSA
age 18
RRSP
to age 71
Tax-Deductible Contributions
TFSA
Contributions are NOT
tax-deductible
Benefits from tax-free growth
RRSP
Contributions are tax-deductible1
Benefits from tax-deferred growth
Withdrawing Funds
TFSA
No tax on withdrawals
TFSAs are purchased with after-tax dollars so no tax is paid when the funds are withdrawn.
There is no age limit when you must start withdrawing funds from a TFSA.
RRSP
Withdrawals are taxed as income
RRSPs investments grow
tax-deferred. Tax is paid when the funds are withdrawn.
Age when you must convert your RRSP to a RRIF. You must start to withdraw in the year you turn 72.
The Benefits of Tax-Free Investing
20 YEARS OF GROWTH
35 YEARS OF GROWTH
2Assumes a 30% marginal tax rate. Annual investments made at end of year.
Saving for your future can be a lengthy process.
Both TFSAs and RRSPs offer tax advantages and can help you save for your long-term and short-term financial goals.
If you have any questions, please contact us today.
Source: Canada Revenue Agency
This is a general guide only and not intended to replace professional financial and tax advice in any form. Please consult your financial advisor on how it relates to your situation. 1 Your RRSP contribution lowers your taxable income, so you're reducing the amount of tax you have to pay. *The RRSP contribution limit varies by individual. Speak with your financial advisor about maximizing your contribution.
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