Canada has an alphabet soup of account types: TFSA, RRSP, FHSA, RESP, RRIF, LIRA, and more. This glossary explains each one in plain language, with the rules that matter and how Mozaic tracks it. Every account below is a first-class account type in Mozaic.
Terms in this glossary
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Tax-Free Savings Account (TFSA)
A TFSA is a registered Canadian account in which investment growth and withdrawals are never taxed, within an annual contribution limit set by the CRA.
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Registered Retirement Savings Plan (RRSP)
An RRSP is a registered Canadian retirement account where contributions are tax-deductible and investments grow tax-deferred until they are withdrawn and taxed as income.
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First Home Savings Account (FHSA)
An FHSA is a registered Canadian account for first-time home buyers that combines a tax deduction on contributions with tax-free withdrawals when the money is used to buy a first home.
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Registered Education Savings Plan (RESP)
An RESP is a registered Canadian account used to save for a child's post-secondary education, where growth is tax-deferred and the government adds matching grants.
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Registered Retirement Income Fund (RRIF)
A RRIF is a registered Canadian account that an RRSP is converted into for retirement, from which you must withdraw a minimum taxable amount each year while the remaining investments grow tax-deferred.
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Locked-In Retirement Account (LIRA)
A LIRA is a registered Canadian account that holds pension money transferred out of a former employer's plan, where the funds are locked in under pension legislation until retirement.
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Non-registered account
A non-registered account is a taxable Canadian investment account with no contribution limits, where capital gains, dividends, and interest are taxed in the year they are earned or realized.
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Margin account
A margin account is a non-registered brokerage account that lets you borrow money from your broker against the securities you hold, in order to invest more than your own cash.