Saving for your future is an essential step towards achieving financial security and independence. Whether you’re planning to buy a home, retire comfortably, or build an emergency fund, there are a variety of savings tools to help you reach your goals. Some of those tools are tax-free or tax-deferred registered savings accounts. There are several available here in Canada: the Tax-Free Savings Account (TFSA), the First Home Savings Account (FHSA), Registered Pension Plans, and Registered Retirement Savings Plans (RRSP).
Tax Free Savings Accounts
The Tax-Free Savings Account (TFSA) is a flexible, tax-advantaged account that allows Canadians to save or invest money without paying tax on the earnings from those investments. Contributions are not tax-deductible and are made with after tax dollars. Any growth in funds and withdrawals made from the account are completely tax-free. Also, withdrawals from a TFSA do not affect your eligibility for federal income-tested benefits like Old Age Security (OAS) or Employment Insurance (EI).
You can use your TFSA for any purpose—saving for a vacation, emergency fund, or even retirement—and you can withdraw funds at any time without penalty. And any funds you withdraw from your TFSA become available as contribution room again in the following calendar year.
As of 2025, the annual TFSA contribution limit is $7,000, and unused contribution room carries forward indefinitely. To learn more about the TFSA visit the CRA’s website here https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributions.html.
First Home Savings Accounts
For Canadians looking to buy their first home, the First Home Savings Account (FHSA) is a savings account that was created by the Government in 2023. It combines features of both TFSAs and RRSPs. Contributions made to the account are tax-deductible (like an RRSP), and withdrawals made from the account, including investment gains, are tax-free when used to purchase a qualifying first home (like a TFSA). The lifetime contribution limit is $40,000, with an annual cap of $8,000. This account is ideal if you’re planning to enter the housing market for the first time. To learn more about the FHSA click here: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html.
Registered Pension Plans
Registered pension plans are normally set up by unions and/or employers to help employees save for their retirement and are a form of deferred compensation. Contributions made by an employer to a registered pension plan on behalf of an employee are not taxable to the employee. Any contributions made to a registered pension plan impacts your Registered Retirement Savings Plan contribution room. Pension payments are taxable when they are made.
To learn more about your IBEW Local 353 Pension Plan watch a short video here and to learn about the three pillars of retirement watch a short video here. Keep up with TEIBAS and savings tools available to you by visiting our YouTube channel and subscribe to the handle by clicking here @myteibas.com.
Registered Retirement Savings Plans
Another way to save for your retirement is contributing to your IBEW Local 353 Group Registered Retirement Savings Plan (RRSP). Your Group RRSP is a “self-directed” plan, which means that when you enroll in the plan, you select where you would like your money to be invested. If you don’t make a choice, your money will automatically be invested in the Continuum Target Date Fund closest to the year you reach age 65. You can change this selection at any time.
You can monitor your contributions online at My Canada Life at Work or by reviewing your Quarterly Contribution Statements issued by TEIBAS. For questions regarding contributing to your spouse’s RRSP, transferring your funds to another RRSP, withdrawing funds, or other topics, please call Canada Life directly at 1-800-724-3402. Click here to read your Group RRSP booklet. Saving for your future doesn’t need to be stressful. It can be easy.
By using a combination of these registered savings accounts, you can minimize your tax obligations and strategically save for major life milestones to build a secure financial future. Whether it’s through tax-free growth, retirement income, or purchasing a first home, starting early and contributing regularly are key to long-term success.
Questions? We’re here to help! You can email us at members@teibas.com or call us at 416-637-6789 (toll-free 1-800-267-0602) for assistance during our regular office hours (Monday to Friday 7:30 a.m. – 4:30 p.m.).