The TFSA and RRSP with FlexiFonds
Discover the benefits of these two savings vehicles.
OPEN AN ACCOUNTTFSAs and RRSPs allow you to invest your savings to achieve your goals. As registered savings vehicles, they have distinct yet complementary tax benefits. With FlexiFonds, you can invest your savings in the local economy and carry out the projects you care about.
Useful things you can do with your TFSA:
Carry out a project: home renovations, travel, a wedding, etc.
Finance your retirement
Buy a home (without the HBP)
Useful things you can do with your RRSP:
Finance your retirement
Buy a home (with the HBP)
Go back to school
| TFSA with FlexiFonds | RRSP with FlexiFonds | |
|---|---|---|
| Main savings objective | Carrying out a project | Planning your retirement |
| Tax-deductible contributions | No | Yes |
| 30% tax credits only available with the Fonds | No | No |
| Taxable withdrawals | No | Yes |
| Contribution room | $7,000 for the year 2024 and up to $95,000 if you have never contributed to a TFSA and turned 18 before the year 2009 | 18% of your income earned in the previous year up to a maximum of $31,560, which is the annual contribution limit for the 2024 tax year |
| Contribution deadline | None | February 29, 2024, for the 2023 tax year |
| Minimum age | 18 | As soon as you have declared income in the previous year |
| Maximum age | None | 71 |
TFSA: Maximize your returns tax-free
The TFSA is much more than a savings account! Since you're investing net money and there are no deductions at the time of your contribution, the return on your investments will not be taxed. Indeed, the TFSA is extremely useful for medium-term projects—and the more you put your savings to work, the more it pays off!
Learn more about the TFSA with FlexiFondsRRSP: Defer the tax payable
The great thing about an RRSP is that your contributions are tax deductible. This means you can save for retirement while reducing your taxable income, which can be very beneficial if you have a high income. However, as soon as you withdraw money from your RRSP, it's added to your income and you must pay your fair share of taxes, unless you withdraw your money to take advantage of the HBP or LLP.
Learn more about the RRSP with FlexiFonds
Are you new to the job market?
If you know your income will increase in the next few years, it may be worthwhile to opt for a TFSA and save your RRSP contribution room for later.
Do you have children under the age of 18?
Your RRSP contributions, which reduce your tax burden, may allow you to receive more tax credits and allowances.
Do you anticipate a low retirement income?
By prioritizing a TFSA, you may be able to get more out of your government pensions, as your withdrawals will not be considered income.
Don't need the minimum withdrawals from your RRIF?
It can be a good strategy to take the amounts withdrawn, which are taxable, and invest them in your TFSA so that they generate non-taxable income.
Why choose FlexiFonds?
70% of FlexiFonds mutual fund assets are related to the local economy.
Most frequently asked questions
