| What Is It? |
A registered investment plan where your investment earnings and withdrawals are tax-free. |
A registered investment plan where your investment earnings are tax-deferred and your contributions are tax-deductible. |
An online savings account with high interest paid on every dollar, calculated daily and paid monthly. |
| How can I use it? |
Save for anything you want—short or long-term goals |
Save for retirement |
Save for anything you want |
| Account ownership? |
Individual only |
Individual only |
Individual or joint |
| Tax Treatment |
|
|
|
| Tax-deductible contributions? |
No |
Yes |
No |
| Savings grow tax-free or tax-referred? |
Tax-free (never taxed) |
Tax-deferred (taxed upon withdrawal) |
No, the interest you earn is taxable |
| Taxed withdrawals? |
Tax-free (never taxed) |
Taxed (added to taxable income the year the money is withdrawn) |
No |
| Contributions |
|
|
|
| Annual contribution limits? |
$6,000 for 2019 (subject to change) plus previous years' unused contribution room |
18% of previous year's earned income, less any pension adjustment, up to maximum annual contribution limit |
No limit |
| Over-contribution penalty tax? |
Yes, 1% per month on excess contributions |
Yes, 1% per month on excess contributions (if you exceed $2,000 lifetime over-contribution amount) |
No |
| Carry-forward of unused contribution room? |
Yes, indefinitely |
Yes, until the year you turn 71 |
Not applicable/no limit |
| Need earned income to contribute? |
No |
Yes |
No |
| Ablity to contribute after age 71? |
Yes |
No, must convert to a RRIF or annuity by the end of the year you turn 71 or close the plan |
Yes |
| Withdrawals |
|
|
|
| Withdraw savings for any reason? |
Yes, although timing depends on what you invest in |
Yes, but taxes are withheld at the time of withdrawal (unless participating in the Home Buyer's Plan or Lifelong Learning Plan) |
Yes, at any time |
| Withdrawals affect contribution room? |
Yes, withdrawal amounts are added to contribution room the following year |
No, contributions are based on previous year's earned income |
No |
| Withdrawals affect government benefits? |
No |
Yes |
No |
(EN)