RRSP limit for the 2013 tax year : $23,820 ($24,270 for 2014)
TFSA limit for 2014 : $5,500
With an RRSP account, you receive a tax deduction for amounts contributed to the account. As an example of the benefits of this, if you have $100,000 of taxable income and put $25,000 into your RRSP, you are taxed only on $75,000. This means you save the taxes on the $25,000 RRSP contribution, at your highest marginal tax bracket. When withdrawals are made from the RRSP, the withdrawals are included in taxable income for the year the withdrawal is made; the best tax strategy is to plan on withdrawing from your RRSP only in low income years.
With a TFSA (Tax Free Savings Account), growth and income on contributions are not taxable. Amounts withdrawn from the TFSA are not taxable; and these amounts can be re-contributed in following years.
For RRSP’s and TFSA’s, check last year’s personal tax notice of assessment for amounts that can be contributed from prior years. Your RRSP contribution should be made by March 1st, but there are no deadlines for the TFSA contributions.