The Difference Between a RRSP and a TFSA
RRSPs are primarily intended for retirement.
TFSAs are like a RRSP for everything else in your life.
RRSP
- Contributions are deductible and reduce your
income for tax purposes
- Withdrawals are added to your income and taxed
at current marginal tax rates
TFSA
- Contributions are not deductible for income
tax purposes
- Withdrawals and growth within your account are
completely tax-free