UNITY FINANCIAL SERVICES
UNITING FAMILIES WITH THEIR GOALS
UNITY FINANCIAL SERVICES
UNITING FAMILIES WITH THEIR GOALS
Compare TFSA vs RRSP vs FHSA
Our role: Unity Financial Services provides marketing and referrals to third-party financial professionals. Products, advice and account opening are provided by those third parties; Unity does not sell these products directly.
Wondering if a TFSA, RRSP or FHSA may be right for you? Discover how each of these accounts can help you reach your goals—and remember, you don’t have to pick just one!
| Feature | TFSA |
|---|---|
| What is it? | A registered account in which qualifying investment income and withdrawals are generally tax-free. |
| Typical savings goal | Short- or long-term goals, including emergencies and retirement. |
| Who can open one? | Generally an individual aged 18 or older with a valid SIN. Contract age rules can affect opening; non-resident contributions can attract tax. |
| Types of investments | Qualified investments offered by the issuer. Tax-free status does not eliminate investment risk. |
| Joint plan? | No; each holder has individual contribution room. |
| Tax-deductible contributions? | No. |
| Investment growth | Generally tax-free for qualified investments; special taxes can apply to prohibited or non-qualified investments and other situations. |
| Annual contribution room | 2026 annual dollar limit: $7,000. Available room also reflects eligible unused room, previous-year withdrawals and your contribution history. |
| Excess contributions | Excess amounts may attract monthly tax; track contributions and withdrawals across all TFSAs. |
| Unused room | Unused eligible contribution room carries forward. |
| Must I earn income? | No earned-income requirement for annual room. |
| Age and closing rules | No maximum age for holding or contributing, subject to available room and other conditions. |
| Withdrawals | Generally tax-free; access timing depends on the investments held. |
| Does a withdrawal restore room? | Eligible withdrawals are generally added back the following calendar year, not immediately. |
| Effect on income-tested benefits | TFSA income and withdrawals generally do not affect federal income-tested benefits. |
| Feature | RRSP |
|---|---|
| What is it? | A registered retirement savings plan with tax-deferred investment earnings. Eligible contributions are deductible within your personal limit. |
| Typical savings goal | Retirement; the HBP and LLP have separate withdrawal conditions. |
| Who can open one? | Discuss eligibility with the issuer. Your own RRSP must mature by the end of the year you turn 71. Available deduction room depends on your circumstances. |
| Types of investments | Qualified investments offered by the issuer may include cash, GICs, mutual funds, ETFs and eligible securities. |
| Joint plan? | No. Spousal RRSP contributions have separate deduction and attribution rules. |
| Tax-deductible contributions? | Generally yes, within your deduction limit. |
| Investment growth | Generally tax-deferred; withdrawals are generally taxable unless a specific exception applies. |
| Annual contribution room | 2026 annual dollar ceiling: $33,810. Personal room incorporates earned income, pension adjustments and unused room; use your CRA assessment. |
| Excess contributions | A monthly tax may apply; the usual $2,000 cushion is not deductible room and has conditions. |
| Unused room | Unused deduction room can carry forward. Age and plan-maturity rules still apply. |
| Must I earn income? | New room generally depends on eligible earned income; unused room can remain available without current earnings. |
| Age and closing rules | Your own RRSP must mature by December 31 of the year you turn 71. Contributions to a younger spouse’s RRSP may remain possible using your room. |
| Withdrawals | Generally taxable and subject to withholding. HBP and LLP withdrawals have separate conditions and repayment obligations. |
| Does a withdrawal restore room? | Ordinary withdrawals do not restore contribution room. HBP and LLP repayments follow their own rules. |
| Effect on income-tested benefits | Taxable withdrawals can affect benefits based on income. |
| Feature | FHSA |
|---|---|
| What is it? | A registered account for eligible first-time home buyers. Contributions may be deductible; qualifying withdrawals are tax-free. |
| Typical savings goal | A qualifying first home. |
| Who can open one? | A Canadian resident who meets the age and first-time home-buyer conditions. Opening and qualifying-withdrawal tests are distinct. |
| Types of investments | Qualified investments offered by the issuer; assess risk against the expected home-purchase date. |
| Joint plan? | No; each holder has an individual account and limits. |
| Tax-deductible contributions? | Generally yes for eligible contributions; RRSP transfers are not deductible. |
| Investment growth | Growth remains sheltered in the account; qualifying withdrawals are tax-free and other withdrawals may be taxable. |
| Annual contribution room | Participation room begins when you open your first FHSA: $8,000 annually, with limited carry-forward and a $40,000 lifetime limit. |
| Excess contributions | Excess amounts may attract monthly tax; review contributions and RRSP transfers together. |
| Unused room | Unused participation room can carry forward, subject to the $8,000 carry-forward limit. It does not accumulate before opening. |
| Must I earn income? | No earned-income requirement for participation room. |
| Age and closing rules | Close by the applicable maximum participation deadline, which considers the 15-year period, age 71 and the year after a first qualifying withdrawal. |
| Withdrawals | Qualifying home-purchase withdrawals are tax-free. Other withdrawals are generally taxable; an eligible direct transfer to an RRSP or RRIF may defer tax. |
| Does a withdrawal restore room? | An ordinary withdrawal does not automatically create new room; special rules can apply to designated amounts and re-participation. |
| Effect on income-tested benefits | Taxable withdrawals may affect benefits; qualifying tax-free withdrawals are treated differently. |
| Feature | RRSP | FHSA | TFSA |
|---|---|---|---|
| What is it? | A registered retirement savings plan with tax-deferred investment earnings. Eligible contributions are deductible within your personal limit. | A registered account for eligible first-time home buyers. Contributions may be deductible; qualifying withdrawals are tax-free. | A registered account in which qualifying investment income and withdrawals are generally tax-free. |
| Typical savings goal | Retirement; the HBP and LLP have separate withdrawal conditions. | A qualifying first home. | Short- or long-term goals, including emergencies and retirement. |
| Who can open one? | Discuss eligibility with the issuer. Your own RRSP must mature by the end of the year you turn 71. Available deduction room depends on your circumstances. | A Canadian resident who meets the age and first-time home-buyer conditions. Opening and qualifying-withdrawal tests are distinct. | Generally an individual aged 18 or older with a valid SIN. Contract age rules can affect opening; non-resident contributions can attract tax. |
| Types of investments | Qualified investments offered by the issuer may include cash, GICs, mutual funds, ETFs and eligible securities. | Qualified investments offered by the issuer; assess risk against the expected home-purchase date. | Qualified investments offered by the issuer. Tax-free status does not eliminate investment risk. |
| Joint plan? | No. Spousal RRSP contributions have separate deduction and attribution rules. | No; each holder has an individual account and limits. | No; each holder has individual contribution room. |
| Tax-deductible contributions? | Generally yes, within your deduction limit. | Generally yes for eligible contributions; RRSP transfers are not deductible. | No. |
| Investment growth | Generally tax-deferred; withdrawals are generally taxable unless a specific exception applies. | Growth remains sheltered in the account; qualifying withdrawals are tax-free and other withdrawals may be taxable. | Generally tax-free for qualified investments; special taxes can apply to prohibited or non-qualified investments and other situations. |
| Annual contribution room | 2026 annual dollar ceiling: $33,810. Personal room incorporates earned income, pension adjustments and unused room; use your CRA assessment. | Participation room begins when you open your first FHSA: $8,000 annually, with limited carry-forward and a $40,000 lifetime limit. | 2026 annual dollar limit: $7,000. Available room also reflects eligible unused room, previous-year withdrawals and your contribution history. |
| Excess contributions | A monthly tax may apply; the usual $2,000 cushion is not deductible room and has conditions. | Excess amounts may attract monthly tax; review contributions and RRSP transfers together. | Excess amounts may attract monthly tax; track contributions and withdrawals across all TFSAs. |
| Unused room | Unused deduction room can carry forward. Age and plan-maturity rules still apply. | Unused participation room can carry forward, subject to the $8,000 carry-forward limit. It does not accumulate before opening. | Unused eligible contribution room carries forward. |
| Must I earn income? | New room generally depends on eligible earned income; unused room can remain available without current earnings. | No earned-income requirement for participation room. | No earned-income requirement for annual room. |
| Age and closing rules | Your own RRSP must mature by December 31 of the year you turn 71. Contributions to a younger spouse’s RRSP may remain possible using your room. | Close by the applicable maximum participation deadline, which considers the 15-year period, age 71 and the year after a first qualifying withdrawal. | No maximum age for holding or contributing, subject to available room and other conditions. |
| Withdrawals | Generally taxable and subject to withholding. HBP and LLP withdrawals have separate conditions and repayment obligations. | Qualifying home-purchase withdrawals are tax-free. Other withdrawals are generally taxable; an eligible direct transfer to an RRSP or RRIF may defer tax. | Generally tax-free; access timing depends on the investments held. |
| Does a withdrawal restore room? | Ordinary withdrawals do not restore contribution room. HBP and LLP repayments follow their own rules. | An ordinary withdrawal does not automatically create new room; special rules can apply to designated amounts and re-participation. | Eligible withdrawals are generally added back the following calendar year, not immediately. |
| Effect on income-tested benefits | Taxable withdrawals can affect benefits based on income. | Taxable withdrawals may affect benefits; qualifying tax-free withdrawals are treated differently. | TFSA income and withdrawals generally do not affect federal income-tested benefits. |
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