Question 1

What is the TFSA contribution limit for 2026?

Accepted Answer

The TFSA annual contribution limit for 2026 is $7,000. If you have been eligible since 2009 and have never contributed, your cumulative room is up to $109,000.

Question 2

Should I choose an RRSP or a TFSA?

Accepted Answer

It depends on your tax bracket now and in retirement. The RRSP is generally better at higher incomes, roughly $60,000 or more, because the deduction is worth more at higher marginal rates. The TFSA is often better under about $50,000, when you need flexibility, or when saving for a non-retirement goal.

Question 3

What is the FHSA?

Accepted Answer

The First Home Savings Account (FHSA) lets first-time home buyers contribute up to $8,000 per year ($40,000 lifetime), deduct contributions from taxable income, and withdraw tax-free for a qualifying home purchase. It combines features of the RRSP and TFSA.

Question 4

What is the RRSP deduction limit for 2026?

Accepted Answer

The RRSP deduction limit for 2026 is 18% of your prior-year earned income, up to a maximum of $33,810. Unused room carries forward indefinitely.