How is a TFSA different from a RRSP?
TFSA RRSP Contribution – Minimum Age Age 18 None Contribution – Maximum Age None 71 2009 Contribution Room $5000 18% of 2008 income with a limit of $20,000 Carry-forward of Unused Contribution Room Yes Yes Over-Contributions Penalty 1% per month 1% per month Tax Deduction for Contributions No Yes Taxation on Withdrawals No Yes Impact of Withdrawals None Taxed as income
