Although they’ve been around since 2009, Tax-Free Savings Accounts (TFSAs) still raise a lot of questions among Canadians. How well do you understand TFSAs? Can you tell the difference between a TFSA and an RRSP? Here’s a quick quiz to test your knowledge.

      For each of the five statements below, say whether they apply to a TFSA or an RRSP: 

              1)     Contributions are tax deductible 

              2)     There is no age limit on contributions

              3)     Contribution room is restored after withdrawals

              4)     The amount withdrawn is added to your taxable income

              5)     Investment income and returns remain tax free

Answers: 1) RRSP 2) TFSA 3) TFSA 4) RRSP 5) TFSA

How did you score? If you got five out of five, congratulations! You have a solid handle on the basics of RRSPs and TFSAs. If you got some answers wrong, we can help. Contact the credit union and we can give you more information on all of your retirement and savings options.