TFSA or RRSP? Which to Choose When Starting in Canada

Two of Canada's most popular registered accounts are the TFSA (Tax-Free Savings Account) and the RRSP (Registered Retirement Savings Plan). Both offer unique tax advantages depending on your current income bracket and retirement goals.

TFSA: Tax-Free Growth & Flexible Withdrawals

Contributions to a TFSA are made with after-tax dollars. All investment growth and future withdrawals are 100% tax-free.

RRSP: Immediate Tax Deduction

Contributions to an RRSP reduce your current taxable income, generating annual tax refunds, while tax on growth is deferred until retirement.