RRSP / TFSA / RRIF Optimizer
Where should your next dollar go — and what are your RRIF minimums?
Froogal says: at your rates, RRSP saves more tax now than you'll likely pay later (~100 advantage on this dollar).
RRSP room
$26,200
Base $16,200 + carry-forward
TFSA unused room
$69,000
Cumulative limit $109,000
Next dollar pick
RRSP
RRSP edge $100
Tax effect of next $1,000
RRSP
Save now: $300.00
Tax later (est.): $200.00
TFSA
No deduction now · no tax on withdrawal
// ASSUMPTION: same nominal dollars later; ignores growth differential and OAS clawback.
Frequently asked questions
- How is RRSP room calculated?
- Lesser of 18% of prior-year earned income or the annual dollar limit, plus carry-forward, minus pension adjustment. Always match your CRA Notice of Assessment.
- Why might TFSA beat RRSP for the next dollar?
- If your expected tax rate in retirement is as high or higher than today’s, the RRSP deduction may not outweigh future tax on withdrawals. TFSA growth and withdrawals are tax-free.
- What is the RRIF spousal age election?
- You may base RRIF minimums on a younger spouse’s age, which can lower the prescribed minimum. Confirm eligibility and forms with your plan administrator.
Not financial advice. Educational estimates only, based on 2026 Canadian rules and your assumptions. Consult a licensed advisor or tax professional before decisions. Froogal is a mascot, not a licensed professional.