Tax timing
RRSP contributions may reduce taxable income now, while withdrawals are generally taxable later.
Focused decision guide
What is the basic trade-off between a TFSA and an RRSP?
Both accounts can shelter investment growth, but contributions and withdrawals interact with tax differently. The better fit depends on information no simple rule can fully capture.
Understand the choice
What changes—and what you give up.
Withdrawal flexibility
TFSA withdrawals are generally tax-free and restore contribution room in a later year, subject to current rules.
Benefits and credits
Taxable retirement income can affect income-tested benefits and credits; TFSA withdrawals generally do not.
Before comparing
The assumptions that matter most.
- Current and future marginal tax rates
- Available contribution room and employer plan options
- Whether the tax reduction from an RRSP contribution is also saved
- Expected withdrawal timing and possible benefit interactions
Test the question
Use the guide with a planning tool.
This is educational planning support, not tax advice. Confirm current limits and rules with the CRA before acting.