TFSA vs RRSP Calculator
How taxes are applied to an investment can make an incredible difference. Since 2009, all Canadians 18 and older have had access to a new type of savings account, the Tax Free Savings Account (TFSA). In a TFSA, all your investment’s earnings (interest, dividends and capital gains) grow tax-free for life. And while there are limits to the amount you can contribute, you’re able to make tax-free withdrawals at any time for any purpose.
Use this calculator to help compare identical investments in a TFSA and RRSP (Registered Retirement Savings Plan).
TFSA versus RRSP
Enter the taxable income amount from line 260 of your personal income tax return when you contribute to the TFSA or RRSP.
Enter the taxable income amount from line 260 of your personal income tax return when you withdraw from the TFSA or RRSP.
The maximum annual contribution limit for TFSAs in 2021 is $6,000 and $27,830 for RRSPs.
If you select "invest", the refund is invested in the RRSP. If you select "spend", the refund is spent elsewhere making the RRSP contribution the same as the after-tax TFSA contribution amount.
Results
This calculator is for educational purposes only. All charts and illustrations are for illustrative purposes only and are not intended to illustrate the performance of any security or portfolio. You should not rely on the results as an indication of your financial needs and we recommend that you seek your own financial, investment, tax, legal or accounting advice nor shall the information herein be considered as investment advice or as a recommendation to enter into any transaction. Professional advice should be obtained prior to acting on the basis of this information. The deduction of advisory fees, brokerage or other commissions and any other expenses that would have been paid may not be reflected in the calculation results. ©Copyright 2021. All rights reserved.
Assumptions
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