Tax-Free Savings Account (TFSA)
Canadian ProgramsA flexible registered account where your investments grow completely tax-free and withdrawals are not taxed. Available to Canadian residents 18 and older with a SIN. Contribution room accumulates each year even if you do not open one right away.
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Registered Retirement Savings Plan (RRSP)
A tax-deferred savings account for retirement. Contributions reduce your taxable income now, and the investments grow tax-free inside the plan. You pay tax when you withdraw, ideally in retirement when your income and tax rate are lower.
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First Home Savings Account (FHSA)
A registered account that combines the tax benefits of an RRSP and a TFSA for first-time home buyers. Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying home purchase are tax-free (like a TFSA). The lifetime contribution limit is $40,000.