TFSA vs RRSP (Or Both...)

Dec 31, 2019 | Wendy Chung


The new year has arrived, and you have TFSA contribution room of $6000 per person.


This is also the season that we get the question about - Should I make a TFSA or RRSP contribution? The "right" answer is: IT DEPENDS. It depends on your personal life and tax situation.


If you are earning income and are in a relatively high marginal tax bracket, you should consider RRSP contribution. This is assuming you have RRSP contribution room left over from your notice of assessment.

If there is any savings that is in a savings account or non-registered account as savings, you should consider TFSA.

Also, if you need the funds to be easily accessible without any tax triggers, TFSA is likely a better bet.

In reality, often it makes sense to do both. The question becomes the amount of contribution for RRSP and TFSA. You should have a chat with your advisor before contributing. Contact us if you have any questions.

We also included further TFSA information on how to use this valuable account effectively. Click HERE for information.