Which Savings Option Is Best For Me?
Not sure which savings account is best for you? Let’s take a closer look at each of them.
| STRP Voluntary Contributions | RRSP | TSFA | |
|---|---|---|---|
| Primary Use | Saving for retirement. | Saving for retirement. | Saving for any purpose. |
| 2024 Contribution Limits | Difference between 18% of your 2024 earnings, and the value of pension you are earning in 2024. | 18% of your earned income on your 2023 tax return, less the value of pension you earned in 2023. | $7,000 |
| Unused Contribution Room | Carries forward as RRSP room. | Carries forward. | Carries forward. |
| Tax Benefit | Contributions are tax-deductible. | Contributions are tax-deductible. | Contributions are after-tax. |
| Withdrawals | Cannot be withdrawn until termination from teaching, or retirement. Withdrawals are taxed as income. | May be withdrawn at any time but you do not get your contribution room back. Withdrawals are taxed as income. | May be withdrawn at any time and contribution room is restored. Withdrawals are not taxed. |
| Plan Maturity | Retirement, or the end of the year in which you turn 71. At retirement, funds can be transferred into an RRSP until age 71 if desired. | The end of the year in which you turn 71. | No age limits. |