My employer is only contributing to my RRSP, so why do I have a TFSA account?
While your employer may be contributing to your RRSP, you also have the opportunity to meet your retirement goals with a TFSA.
The Tax-Free Savings Account (TFSA) offers several benefits! Some of these benefits include:
- Increased withdrawal flexibility
- Potential to maximize government benefits for modest income earners
- No age limit when you must begin withdrawing funds
While the TFSA is a powerful savings tool for everyone, it is especially attractive for modest income earners who earn less than $50,000 per year.
You can make TFSA contributions by setting up deductions through your bank account - ongoing or a lump sum amount - or through a direct transfer from another financial institution.
If you are still unsure about choosing an RRSP vs. TFSA, feel free to check out these helpful articles: