TFSA vs RRSP: Tax Treatment Compared (Updated)

TFSA vs RRSP tax treatment compared for Canada, tax year 2026, in Canadian dollars (CAD): how each account works at contribute, grow, and withdraw; the 2026 limits ($7,000 TFSA vs $33,810 RRSP dollar limit); TFSA room restoration on January 1 of the next year; excess-contribution tax (1% per month, no $2,000 TFSA buffer); RRSP withholding (10% / 20% / 30%) vs final tax; Home Buyers' Plan and Lifelong Learning Plan as repayment programs; and age 71 RRIF conversion vs no TFSA upper age. All figures from CRA primary sources. --- CHAPTERS 0:00 Introduction & Promise 0:12 Market & Currency Frame — Canada, CAD, 2026 0:25 Scope + Educational Disclaimer 0:29 Contribute / Grow / Withdraw Comparison 1:39 2026 Limits Side-by-Side — $7,000 vs $33,810 2:35 TFSA Room Mechanics & Recontribution Myth 3:25 Excess Contribution Penalties Contrast 4:05 RRSP Withholding ≠ Final Tax 4:51 HBP & LLP — Repayment Programs, Not Tax-Free 5:37 Age 71 RRIF Conversion vs TFSA No Upper Age 6:21 Fit / Skip — Who This Is For 7:08 Compliance Close & Next Episode --- SOURCES CRA: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: What is a TFSA — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Calculate your TFSA contribution room — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Before you contribute to a TFSA — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: If you over-contribute to a TFSA — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Withdrawing from a TFSA — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: How contributions affect your RRSP deduction limit — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Excess Contributions (RRSP/PRPP/SPP) — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Making withdrawals (RRSP) — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Tax rates on withdrawals — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Withdrawing from your own RRSPs — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Options for your own RRSPs (age 71) — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: The Home Buyers Plan — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Lifelong Learning Plan Withdrawals — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: Important dates for RRSPs, HBP, LLP, FHSAs and more — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: RC243 Tax-Free Savings Account (TFSA) Return — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) CRA: T1-OVP Individual Tax Return for RRSP, PRPP and SPP Excess Contributions — https://www.canada.ca/en/revenue-agen... (retrieved 2026-10-06) Full CRA source list (all primary sources used in research) is in the pinned comment. --- DISCLAIMER Educational content only — not tax, legal, or investment advice. Verify with CRA / IRS / ATO / HMRC or a licensed professional. Rules change by tax year. This episode covers Canada only. All figures are tax year 2026, in Canadian dollars (CAD).