TFSA
A registered account where eligible contributions are not tax-deductible and qualifying investment growth and withdrawals are generally tax-free. Contribution room and re-contribution rules matter.
Account is not investment
Choose the container and its contents deliberately.
A TFSA, RRSP or FHSA is an account with particular rules. The investments held inside determine market exposure, risk, cost and liquidity.
RRSP
A retirement-focused registered plan where eligible contributions may reduce taxable income and withdrawals are generally taxable. Timing and individual tax circumstances matter.
FHSA
A registered plan intended to help eligible first-time home buyers save. Contributions may be deductible and qualifying withdrawals may be tax-free.
Non-registered account
An account without the same registered-plan tax treatment. Interest, dividends and capital gains may have different tax consequences.
Questions to verify
- Am I eligible for this account?
- What is my verified contribution room?
- What happens when money is withdrawn?
- Does the timeline fit the goal?
- What investments, fees and restrictions apply?
Verify current rules through the Canada Revenue Agency registered-plans learning resource. Tax treatment depends on individual circumstances.