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The Registered Retirement Savings Plan (RRSP) and the Tax Free Savings Account (TFSA) both offer tax efficient savings, but there are key differences, as noted below:

FeaturesTFSARRSP
PurposeGeneral savingsSave for retirement
Tax deductible deposits
First 60-day contribution provision
Residency Requirements (Resident of Canada when the account is opened)
Contribution limit based on earned income
Spousal contributions allowed
Qualifying withdrawals impact federal gov't benefits
Maximum age limit (71)
Tax free growth
Tax free withdrawals
Pay back requirements
TransfersCan transfer to a TFSACan transfer to an RRSP or RRIF
Tax treatment on deathIncome earned after date of death is taxable to the beneficiary. The holder is not taxed on the date of death amount.Income earned after date of death is taxable to the benefiary. There is no tax where the spouse transfers to an RRSP or RRIF. The holder is taxed on the date of death amount if not transferred to the spouse's registered account.
Maximum Contribution (2023)Annual limitLessor of $30,780 or 18% of previous year's earned income.