Retirement Academy

RRSP vs TFSA

RRSPs and TFSAs are both savings accounts, but they are taxed differently.

RRSP

An RRSP may reduce taxable income when you contribute, but withdrawals are taxable later.

TFSA

A TFSA does not usually reduce your tax when you contribute, but withdrawals are generally tax-free.

The right mix depends on income, taxes, benefits, pension income, and retirement goals.