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
100,000
Taxable income when you withdraw
50,000
Contribution amount
10,000
Invest or spend the RRSP refund?
Years of growth
25
Rate of return
6.00%
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.
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.
Contribution amount

The maximum annual contribution limit for TFSAs in 2017 is $5,500 and $26,010 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.
X
Input Error: Rate of return

The maximum rate of return you can enter is 15.00%.
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 January 2017. Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The RRSP contribution limit is $26,010 for 2017. The TFSA contribution limit for 2017 is $5,500. 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
This calculator is for educational purposes only. All charts and illustrations are for illustrative purposes only and are not intended to illustrate the performance of any security or portfolio. You should not rely on the results as an indication of your financial needs and we recommend that you seek your own financial, investment, tax, legal or accounting advice nor shall the information herein be considered as investment advice or as a recommendation to enter into any transaction. Professional advice should be obtained prior to acting on the basis of this information. The deduction of advisory fees, brokerage or other commissions and any other expenses that would have been paid may not be reflected in the calculation results. ©Copyright 2017 Ativa Interactive Corp. All rights reserved. Powered by Ativa.com.