My employer is only contributing to my TFSA, so why do I have an RRSP account?
While you might be investing your contributions in a TFSA, you might ask yourself about the benefits of an RRSP.
Contributing to an RRSP supports your retirement goals by allowing you to deduct contributions from your taxable income. Investing with an RRSP could be an attractive option if you earn over $50,000 a year. This is because members in this income bracket are unlikely to qualify for the Guaranteed Income Supplement (GIS) and may receive a larger benefit from the RRSP deduction.
You can make RRSP contributions by setting up deductions through your bank account - ongoing or a lump sum amount - or through a direct transfer from another financial institution.
In 2024, the maximum you can contribute to an RRSP is 18% of your earned income to a limit of $31,560.
Still unsure about whether to to invest with a TFSA vs. an RRSP? Check out these helpful articles: