How do the TFSA and the RRSP stack up?
| TFSA
 | RRSP
 |
| Age limit | Starting at age 18.
No age limit. | No minimum age.
No later than December 31 of the year you turn 71. |
| Contribution room | $5,000 in 2009, then indexed to the consumer price index in $500 increments. | 18% of income, up to a contribution limit of $21,000 for 2009.
This limit is adjusted based on increases in the Average Industrial Wage (AIW). |
| Tax-deductible contributions | No | Yes |
| Taxable withdrawals | No | Yes |
| Taxable investment earnings | No | Not as long as the money remains in the RRSP. |
| Impact of withdrawals on government benefits (e.g., Employment Insurance, Old Age Security, Canada Child Tax Benefit) | None | Yes, because they are added to your taxable income. |
| Withdrawals free up contribution room (the amount withdrawn can be re-contributed at a later date) | Yes. The amounts withdrawn free up an equivalent amount of contribution room the following year. | No |
| Spousal contributions | No, but you can gift money to your spouse to be invested in their own TFSA. | Yes |
| Death taxes | No (for the value as at the date of death). | Yes, except in the event of a tax-free rollover. |
| Eligible savings products | Term investments (excluding the Non-Redeemable Guaranteed Interest Fund)
Guaranteed Investment Funds | Term investments
Investment Funds |
The information in this table has been adapted from the 2008 budget tabled by Canada's Minister of Finance.