eBook Summary – Chapter 17

Deferred Income Plans (RRSP, TFSA, RESP)

RRSP — special circumstances

Comparison

RRSP TFSA RESP Two options to remove funds from RRSP without losing the
contribution room or paying tax, assuming paid back within
Contribution Yes No No
required time frame:
deductible
1. Home Buyer’s Plan: 2. Lifelong Learning Plan
Earnings in Not while in the plan No Not while in the  Withdrawal must be for  Withdrawal to attend
plan taxed plan
a home designated education
 Taxpayer cannot have  Individual or spouse can
Limits on Yes Yes Yes
owned a home for prior withdraw
contributions Lessor of Yearly contribution Lifetime of four calendar years  $10,000 per year; max of
18% of prior year maximums $50,000 per  Maximum withdrawal is $20,000 in total
earned income (currently $5,500 beneficiary $25,000  Repayment over 10
per year)  Repayment over 15 years, starting in the fifth
And
Current-year years, starting with the year after withdrawal
deduction limit second calendar year unless withdraw from
(2018 – $26,230) after withdrawal school earlier

Contribution No Yes N/A

Excess TFSA and RRSP contributions subject to 1%
room Except with Home Contribution room monthly penalty. Additional penalties and interest applicable
regained after Buyer Plan or recovered at the if form T1 OVP or RC243 not filed by deadline.
withdrawal Lifelong Learning start of the calendar
Plan year after
withdrawal

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