The simplest way to think about it
An RRSP can help when the deduction is especially valuable today and your withdrawals may happen at a lower tax rate later. A TFSA can help when flexibility, tax-free growth, and tax-free withdrawals matter more.
Questions worth asking
- What is your tax rate now?
- What do you expect your future tax picture to look like?
- How much flexibility do you want before and during retirement?