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Is a Roth IRA the Same as a TFSA?
Tiffany Woodfield, Senior Financial Advisor, Associate Portfolio Manager, CRPC®, CIM®, TEP®
Summary of Key Points
A Roth IRA and a tax-free savings account (TFSA) are not the same, though both use after-tax dollars, grow tax-free, and generally allow tax-free withdrawals.
Roth IRA eligibility requires earned income, has income limits, and does not allow unused contribution room to carry forward.
A TFSA is based on annual government limits and requires Canadian tax residency, a valid SIN, and being over age 18.
Roth IRA withdrawals before age 59½ or before five years may trigger taxes and penalties.
TFSAs allow withdrawals and recontributions without penalties, except in cases of over-contribution.
Video script coming soon.
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