TFSARRSP

Age limit

As of age 18
No maximum age
No minimum age1
No later than the year you turn 71.

Dollar limit

$5,000 per civil year from 2009 to 2012, $5,500 for 2013, then indexed to inflation in increments of $500 as per CPI2$22,970 for 2012, indexed to growth in Average Wage

Contribution room

Equal to dollar limit18% of income, up to dollar limit

Contribution tax deductible

NoYes

Withdrawal taxable

NoYes

Investment income taxable

NoNo3

Impact of withdrawals on income-tested government benefits and tax credits

NoneYes, since it is added to income.

Creates contribution room as a result of withdrawals (it is possible to "re-contribute" the amounts withdrawn)

Yes, equivalent to the withdrawal amount (as of the year following withdrawal)No

Contribution to spouse's account

No, but it is possible to give money to one's spouse (as a gift) so that he or she can conrtibute to his or her own TFSAYes

Tax upon death

No (fair market value at the date of death).Yes, subject to the exemptions applicable to the spouse and dependent children and grand-children

Eligible savings products

Term investments (excluding the Non-Redeemable Guaranteed Interest Fund) Guaranteed Investment Funds (Helios2TM)

Market-linked term investments - Guarantee Advantage.

Term investments (excluding the Non-Redeemable Guaranteed Interest Fund)
Guaranteed Investment Funds (Helios2TM)

Market-linked term investments -Guarantee Advantage.

 Find out more about the TFSAFind out more about the RRSP

The information contained in this table is taken from and adapted from information provided by the Department of Finance Canada, 2012


1 Have reached the minimum authorized age to own a contract in Canada. The legal age in Quebec is 16 and the legal age in the Canadian provinces is 18.
2 Consumer Price Index.
3 Investment income is taxable when withdrawn.