Registered accounts
RRSP: the tax-deferral one
The Registered Retirement Savings Plan — a deduction now, tax later, and when that trade actually pays off. Full write-up in progress.
Still being written
Short version below. The full piece — spousal RRSPs, the Home Buyers' Plan, RRSP-to-RRIF conversion, the pension-adjustment wrinkle — is coming.
The RRSP isn't tax-free, it's tax-deferred. You deduct the contribution now and pay tax when you withdraw later. That's a good deal only if your tax rate is lower when the money comes out than it is today.
Your room
- 18% of your prior-year earned income, up to a dollar cap.
- 2026 cap: $33,810.
- Unused room carries forward. Your exact number is on your latest Notice of Assessment and in CRA My Account.
- Contributions for a tax year can be made until roughly the first few days of March the following year — check the exact deadline each year.
When it beats the TFSA
- Your marginal rate is high now (say 40%+) and will be lower in retirement.
- You'll actually invest the tax refund rather than spend it.
- Employer match on a group RRSP — always take the full match first.
When it doesn't
Early-career and in a low bracket? A dollar deducted at 20% now, taxed at 30% later, went backwards. TFSA or FHSA usually wins there.
— Max Wealth. Not financial advice; this is my own experience.