Much of the financial investment and savings advice I come across is U.S.-centric, so I always have to ask myself things like “what’s the Canadian equivalent to a 401(k), again?”
Here’s my reference sheet. Making it public to hopefully help some other Canadians interested in personal financial management.
Note: This is an incredibly basic “equivalence” list. Different laws dictate how each investment vehicle works in each country (and even different states/provinces). This is just how the overall concept of each vehicle generally equates in my mind with many many caveats involved (see the TFSA vs Roth IRA, for instance).
|U.S. term||Canadian term||Definition|
|IRA||RRSP/RSP||pre-tax vehicle can hold non-cash investments; annual limit carries over.|
|Roth IRA||TFSA||after-tax investment vehicle with annual contribution limit; in Canada it can hold cash and the annual limit carries over.|
|529 plan||RESP||pre-tax contributions that save toward education goals of recipient of the plan|
|401(k)||defined contribution pension||Wikipedia article|
|401(a)||defined benefit pension||Wikipedia article|
Terms I have yet to match are left blank. If I miss or misstate something in this table, let me know in the comments and I’ll update it.