10 Essential Facts About TFSAs
8. The advantage of TFSAs over RRSPs at retirement
8. Unlike RSPs, contributions to your TFSA are not deductible from your taxable income, but any profit earned is tax-free and you never have to pay tax on those earnings. With RRSPs, tax is payable when you withdraw that money, and depending on your income at that time, that RRSP withdrawal could be taxed at quite a high rate.