Tax Free Savings Account
Tax Free Savings Accounts (TFSAs) provide flexible, tax-free investing for any Canadian over the age of 18. Contributions are not deducted for income tax purposes, and investment income (including capital gains) earned will not be taxed, even when withdrawn.
RRSPs vs TFSAs
|For retirement||For everything else|
|Contributions are deductible and reduce income for tax purposes||Contributions are not tax-deductible|
|Withdrawals are added to your income and taxed at current rates||Withdrawals and growth within your account are tax-free|
|Deadline for contributions around the end of February annually||No deadline for contributions|