advice
Registered Savings Accounts
Explore and compare accounts geared toward saving for the future, a new home or retirement.
Choose a Savings Account That’s Right For You
Here’s a quick comparison of three important government savings programs: the Tax-Free First Home Savings Account (FHSA), the Tax-Free Savings Account (TFSA), and the Registered Retirement Savings Plan (RRSP), which includes the Home Buyers’ Plan (HBP). Each has its own advantages to help you save and achieve your homeownership goals. Discuss with your Libro Coach to determine which of these options, or perhaps a combination of them, works best for you.
Tax-Free FHSA
A Tax-Free FHSA is for those saving for their first home.
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Key Benefits:
- Contributions are tax-deductible
- Withdrawals will be tax-free if used to buy qualifying first-time home
- Maximum annual contribution: $8,000, includes contributions and RRSP transfers
- A maximum of $8,000 unused contribution room can carry forward to following year
- Maximum lifetime contribution: $40,000
Eligibility:
- Canadian residents aged 18 of older (up to age 71) with a valid SIN, who are first-time home buyers*
Additional Details:
- At 15 years of opening plan or age 71, remaining funds not used towards a qualifying first-time home can transfer tax-free to an RRSP or RRIF.
TFSA
A TFSA is for individuals working towards short and long-term goals.
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Key Benefits:
- Contributions are not tax-deductible
- Tax-free withdrawal
- Maximum annual contribution: $6,500 for 2023 plus any unused contribution room and the total value of withdrawals made in previous years.
- Maximum annual contribution carried forward
- Maximum lifetime contribution: Unused contribution room is accumulated and carried forward from age 18. See CRA for your specific amount
Eligibility:
- Canadian residents aged 18 or older with a valid SIN.
Additional Details:
- Account does not need to be closed
RRSP
A RRSP is for retirement, or buying your first home through HBP.
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Key Benefits:
- Contributions are tax-deductible
- Tax-free withdrawal up to $35,000 to buy a qualifying first home, under the HBP, but must be repaid to the RRSP over a period of 15 years
- Maximum annual contribution: the lesser of 18% income earned in the previous year or the annual maximum of $30,780 in 2023 plus any used contribution room.
- Maximum annual contributions carry forward
- Maximum lifetime contribution room is calculated based on unused contribution room, the previous year’s net income, the annual RRSP limit. See CRA for your specific amount
Eligibility:
- Canadian residents with a valid SIN who are under the age 71
- Earned income and filed a tax return in Canada
Additional Details:
- When the account closes remaining funds can roll over tax-free into a RRIF
