RRSP & TFSA
The differences between investing via non-registered, registered (RRSP), and tax free savings accounts (TFSA).
| Non-Registered |
Registered (RRSP) | Tax Free Savings Account (TFSA) | |
| Age limit | None | 0-71 years | 18 years and older |
| Yearly contribution limit | None |
$21000 (2009), $22000 (2010) |
$5000 (carries forward and accumulates) |
| Source of funds | After-tax dollars | Pre-tax dollars | After-tax dollars |
| Gains taxed? | Yes | No | No |
| Capital losses reduce tax | Yes | No | No |
| Withdrawls taxed? | Yes (capital gains) | Yes | No |
| Ideal investment | Canadian Dividends | US Dividends |
Non-Canadian Capital Gains |
| Impact on Income-Tested Benefits | Yes | Yes | No |
| More information | Canada Revenue Agency | Government of Canada |