TFSA versus RRSP
See how your marginal tax rate affects the growth of your TFSA and RRSP.
| Alberta |
|
100,000
Taxable income when you contribute
Enter the taxable income amount from line 260 of your personal income tax return when you contribute to the TFSA or RRSP. |
|
50,000
Taxable income when you withdraw
Enter the taxable income amount from line 260 of your personal income tax return when you withdraw from the TFSA or RRSP. |
|
10,000
Contribution amount
The maximum annual contribution limit for TFSAs in is $ and $ for RRSPs. |
|
Spend or invest
If you select 'invest', the refund is invested in the RRSP. If you select 'spend', the refund is spent elsewhere making the RRSP contribution the same as the after-tax TFSA contribution amount. |
|
25
|
|
6.00%
Input Error: Rate of return
Enter a value between and %. |
Net Amount in 18 Years
TFSA
RRSP
| Contribution | TFSA | RRSP |
| Pre-tax dollars | $10,000 | $10,000 |
| Tax at % | $3,600 | $0 |
| After-tax dollars | $6,400 | $10,000 |
| Investment value in years | $27,648 | $42,919 |
| Tax at % | $27,648 | $42,919 |
| Net amount in years | $27,648 | $29,185 |
Assumptions
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The RRSP contribution limit is $ for . The TFSA contribution limit for is $. Calculations do not factor in the effect of RRSP withdrawals on Old Age Security and other government benefits and credits that are income tested.
Disclaimer
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The RRSP contribution limit is $ for . The TFSA contribution limit for is $. Calculations do not factor in the effect of RRSP withdrawals on Old Age Security and other government benefits and credits that are income tested.
Disclaimer
TFSA versus RRSP
See how your marginal tax rate affects the growth of your TFSA and RRSP.
| Where do you live? | Alberta |
| Taxable income when you contribute: | $75,000 |
| Taxable income when you withdraw: | |
| Contribution amount: | $2,000 |
| Invest or spend the RRSP refund? | |
| Years of growth: | 25 |
| Rate of return: | 6.00% |
Assumptions
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The RRSP contribution limit is $ for . The TFSA contribution limit for is $. Calculations do not factor in the effect of RRSP withdrawals on Old Age Security and other government benefits and credits that are income tested.
Disclaimer