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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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Deal Addict
Nov 12, 2008
1983 posts
389 upvotes
Aurora

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
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
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.
Deal Addict
Nov 12, 2008
1983 posts
389 upvotes
Aurora
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!

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