TFSA / RRSP Chart

Category

TFSA

RRSP
Eligibility Canadian residents aged 18 or older Canadian residents of any age
Investment types Mutual funds, GICs, savings accounts, stocks, bonds, and, in certain cases, shares of small business corporations. Mutual funds, GICs, savings accounts, stocks, bonds, and, in certain cases, shares of small business corporations.
Spousal plans Not allowed Allowed
Multiple plans Unlimited Unlimited
Contribution limits $5000 (for 2009) indexed to inflation
+ previous unused contributions
+ amounts withdrawn in previous years		 18% of previous year’s earned income up to a max set for that year
- previous year’s pension adjustment
+ current pension adjustment reversal
+ previous unused contributions
Excess contributions Subject to 1% penalty tax Subject to 1% penalty tax
Unused contributions Carried forward Carried forward
Contributions tax deductible No Yes
Tax deductibility of money borrowed to invest No No
Investment income earned Non-taxable while in the plan Non-taxable while in the plan
Withdrawals Not taxable Must be included in income for the year of withdrawal and will be taxed at regular rates
Withholding taxes on withdrawals No Yes
Recontribution of withdrawals Allowed Not allowed
Maximum age for withdrawals None Dec 31 of the year you turn 71
Option to transfer to a RRIF or annuity
Withdrawals and federal income-tested benefits No affect Must be included in earned income so can affect income-tested benefits

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