Flexible?

• Can be withdrawn anytime and used for anything

• Cannot withdraw funds penalty-free except for under Home Buyers’ Plan (HBP) or the Lifelong Learning Plan (LLP)

Product options:

• High Interest Savings Account
• GICs

• High Interest Savings Account
• GICs

Direct Contributions?

• Can contribute directly (up to $88,000 total as of 2023)

• Can contribute directly (18% of previous year's earned income up to $30,780 for 2023)

Tax Deduction?

• No tax deduction for contributions

• You can claim a tax deduction in the year you make a contribution, or carry it forward to future years

Withdrawal Rules:

• Withdraw any amount at any time, without paying income tax
• When you cash out, it's tax-free
• Can only replace the amount of the withdrawal in the same year if you have available TFSA contribution room

• When you cash out, you have to pay income tax

Contribution Limits:

• Annual maximum: Varies year to year. Max of $6,500 for 2023.
• Lifetime maximum: As of 2023, $88,000 total for those who were 18 in 2009.

• Annual maximum: 18% of previous year's earned income up to $30,780 (whichever is lower).

Expiration?

• No expiry

• RRSP must be converted to a Registered Retirement Income Fund (RRIF) by Dec 31 of the year you turn 71.