Tax-Free Savings Account (TFSA) Registered Retirement Savings Plan(RRSP)
Contributions Not tax-deductible Tax-deductible
Withdrawals Tax-free – withdrawals are added to contribution room effective the following year Taxed – withdrawals are final and are not added to contribution room
Earned income requirement for contribution room Contribution room is not based on earned income Contribution room is based on earned income
Age requirement for conversion/collapse There are no conversion requirements for TFSAs An RRSP must be converted to a Registered Retirement Income Fund (RRIF) or annuity at age 71
Attribution rules Attribution rules do not apply. Give money to a spouse or adult child (age 18+) to contribute to their own TFSA Attribution rules may apply to withdrawals from a spousal RRSP under certain conditions
Eligible investments Mutual funds, stocks, bonds and all investments currently permitted in RRSPs