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401-k and IRA - is there a Cdn equivalent?

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  • Feb 24th, 2017 4:30 pm
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Feb 24th, 2017 1:45 pm
Gweedz [OP]
Deal Addict
Nov 12, 2008
1982 posts
389 upvotes
Aurora

Feb 24th, 2017 1:45 pm

401-k and IRA - is there a Cdn equivalent?

I'm reading a few books that mention 401-K and IRA.

In a nutshell, what are they and how do they differ from the Canadian version?

I'm mainly concerned if I should ignore anything that mentions them, or if the general advice is somewhat applicable to Canada.
3 replies
Feb 24th, 2017 3:15 pm
Mike15
Deal Fanatic
Nov 24, 2013
6414 posts
3262 upvotes
Kingston, ON

Feb 24th, 2017 3:15 pm

jfall wrote: ↑ US IRA = Canadian TFSA essentially but there are differences - http://www.moneysmartsblog.com/canadian ... -roth-ira/

US 401k = Canadian RRSP essentially but there are differences - http://www.moneysmartsblog.com/canadian ... omparison/
More closely (though there's definitely differences)

Roth IRA = TFSA
Traditional IRA = RRSP
401(k) = DCPP

401(k) is contributed to through payroll deduction only and is more tightly locked in than an RRSP, so it's closer to workplace Defined Contribution Pension Plans in Canada.
+2
Feb 24th, 2017 4:30 pm
Gweedz [OP]
Deal Addict
Nov 12, 2008
1982 posts
389 upvotes
Aurora

Feb 24th, 2017 4:30 pm

jfall wrote: ↑ US IRA = Canadian TFSA essentially but there are differences - http://www.moneysmartsblog.com/canadian ... -roth-ira/

US 401k = Canadian RRSP essentially but there are differences - http://www.moneysmartsblog.com/canadian ... omparison/
Excellent links. I learned a lot - especially how generous our TFSA and RRSP are compared to the US counterparts. However the US version of our RESP does seem to be better.

Excellent info here - now when I read about these I'll have a much better idea of what they're talking about!
+1

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