Assumptions and disclosure

This calculator compares RRSP and TFSA outcomes using the assumptions you enter. The core question is simple: are you likely to get a bigger tax benefit from the RRSP deduction today, or from TFSA tax-free withdrawals later?

A marginal tax rate is the estimated tax rate on the next dollar of income. RRSPs are usually stronger when your current marginal tax rate is higher than your expected withdrawal tax rate. TFSAs are often stronger when your tax rate is low today, uncertain later, or when flexibility matters.

This calculator uses simplified deterministic projections with constant contribution amounts, constant tax rates, and a constant investment return assumption.

Pre-tax equivalence means the RRSP contribution may be grossed up so its after-tax cost is comparable to the TFSA contribution. The same nominal contribution option is also available, but it is not the same cost comparison.

TFSA growth and withdrawals are treated as tax-free. RRSP contributions are assumed to generate an upfront deduction based on the entered current marginal tax rate, and RRSP withdrawals are estimated using the entered retirement marginal tax rate.

The RRSP refund is handled according to the selected option. If reinvested, the simplified refund amount is added to the RRSP-side investment stream; if spent, it does not increase the projected account value.

Employer matching, if entered, is added only to the RRSP scenario and is simplified. Actual matching formulas, vesting rules, payroll timing, and plan limits may differ.

The calculator does not validate RRSP or TFSA contribution room, model dynamic tax brackets, pension income, OAS clawback, GIS eligibility, employer-plan rules, fees, inflation, household-level planning, FHSA choices, or legislative changes.

The RRSP gross-up assumes the taxpayer has sufficient RRSP contribution room and can use the deduction at the entered current marginal tax rate.

OAS/GIS and FHSA sensitivity are noted only as planning context. This calculator is not a government-benefit optimization engine or FHSA comparison tool.

Actual outcomes may differ materially from this simplified comparison. Educational information only. This tool is not financial, tax, legal, accounting, investment, retirement, estate, insurance, mortgage, lending, or cross-border planning advice.