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TFSA |
RRSP |
RESP |
FHSA |
| Purpose |
A Tax-Free Savings Accounts (TFSA) is a government approved account designed to help you save for just about anything. |
A Registered Retirement Savings Plan (RRSP)is a government approved investment account designed to help you save for your retirement.
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A Registered educational savings plan (RESP) is used to save for your child’s post-secondary education. |
A First Home Savings Account (FHSA) is an exciting new registered plan that lets you save tax-free for a down payment on your first qualifying home. |
| Age |
18 and older |
Up to the end of the year you turn 71 |
Contribute until the beneficiary turns 31 |
Between 18 and 71 |
| Annual Contribution Limit |
$7,000/year (for 2024)
Any unused contribution room is carried forward indefinitely.
Contribution limit is determined by the government each year.
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18% of your income or the current fixed contribution or up to the maximum annual contribution limit for the year.
Any unused contribution room is carried forward until the year you turn 71.
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No annual limit.
Unused contribution room can be carried forward.
Can contribute up to 30 years after opening account.
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$8,000/year
Any unused contribution room is carried forward.
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| Lifetime Contribution Limit |
No lifetime contribution limit - Log in to the Canada Revenue Agency website or call 1.800.267.6999 to find out how much TFSA contribution room you have available. |
No lifetime contribution limit. |
$50,000 per beneficiary |
$40,000 |
| Tax Treatment for Contributions |
Contributions are not tax-deductible
Excess contributions are subject to a tax of 1% per month
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Contributions are tax-deductible.
Excess contributions are subject to a tax of 1% per month
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Contributions are not tax-deductible.
Excess contributions are subject to a tax of 1% per month
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Contributions are tax-deductible.
Excess contributions are subject to a tax of 1% per month
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| Tax Treatment for Withdrawals |
Tax-free withdrawals.
Withdrawal amount is added to your contribution room starting the following calendar year.
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Withdrawals (except Home Buyers’ Plan and Lifelong Learning Plan) are subject to withholding tax and added to taxable income. |
Educational assistance payments are taxable to the beneficiary (student); return of original contributions is tax-free. |
Qualifying withdrawals are tax-free. |
| Maximum holding period |
No maximum holding period |
Until age 71 |
35 years |
15 years |
| Special Features |
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Home Buyer’s Plan allows you to withdraw up to $35,000 from your RRSP tax free to use as a downpayment on your first house.
Lifelong Learning Plan allows you to withdraw up to $10,000 a year from your RRSP to help fund your (or your spouses) post-secondary education.
Must be converted to a RRIF at the end of the year you turn 71.
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Federal government matches 20% of your contribution to a maximum of $500 per year until the beneficiary turns 17, through the Canada Education Savings Grant (CESG).
Lifetime maximum of the CESG is $7,200 per beneficiary.
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Contributions must be used within 15 years of opening your FHSA.
Must be a first-time home buyer.
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