Each type of registered account serves a different purpose. This table summarizes how each one behaves at the contribution, growth, and withdrawal stages.
Advantageous or money in your pocketTaxable or not applicable
TFSA
- Deductible contributions
- No
- Tax-free growth
- Yes
- Taxation of withdrawals
- Tax-free
RRSP
- Deductible contributions
- Yes
- Tax-free growth
- Yes
- Taxation of withdrawals
- Taxable
FHSA
- Deductible contributions
- Yes
- Tax-free growth
- Yes
- Taxation of withdrawals
- Tax-free
RESP
- Deductible contributions
- No
- Tax-free growth
- Yes
- Taxation of withdrawals
- Contributions: tax-freeGrants: taxable
RDSP
- Deductible contributions
- No
- Tax-free growth
- Yes
- Taxation of withdrawals
- Contributions: tax-freeGrants: taxable
RRIF
- Deductible contributions
- Not applicable
- Tax-free growth
- Yes
- Taxation of withdrawals
- Taxable
Simplified overview for informational purposes. Tax rules carry nuances — let’s talk through your situation to build the right account architecture.