How are retirement accounts taxed in Canada?

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How are retirement accounts taxed in Canada?

Rounding it up

  • In Canada, there are two main types of retirement savings accounts: Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).

  • The funds deposited into an RRSP are tax-deferred, meaning they aren’t taxed until withdrawal.

  • The funds deposited into a TFSA are post-tax dollars that can be withdrawn tax-free.

  • Regardless of which retirement account you select, funding that retirement account and investing the funds in a diverse mix of assets is crucial.

7 min read

Ally Streelman
#retirement#tax#RRSP#TFSA

Ally Streelman

Ally Streelman is a storyteller whose work spans money, wellness, travel, and more with the chief goal of empowering readers. When she’s not stringing together sentences, you can find her immersed in a new city, cookbook, or novel or encouraging women to take hold of their financial journey.

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