FHSA, TFSA, RRSP priority spelled out
Brandon Wealth published a priority order for Canadian accounts: use FHSA for a first home ($8K/year, $40K lifetime), then TFSA for flexibility, then RRSP for high‑income tax deferral argued. The thread maps account sequencing to common tech earnings patterns—fast equity events and intermittent bonuses.
FHSA rules: annual contribution room is $8,000 and the lifetime cap is $40,000 (CRA)(canada.ca), unused annual room can be carried forward up to $8,000 per year (Visaverge)(visaverge.com), and unused FHSA balances can be transferred tax‑free into an RRSP/RRIF without reducing RRSP deduction room (Canada.ca)(canada.ca). The TFSA remains the flexible tax‑free bucket for intermittent cash needs with the 2026 annual dollar limit set at $7,000 (CRA)(canada.ca) and cumulative contribution room for someone eligible since 2009 reaches $109,000 by 2026 (Fidelity/industry summaries)(fidelity.ca). RRSPs still perform the tax‑deferral heavy lifting: contributions reduce taxable income immediately (Canada.ca)(canada.ca), and the Home Buyers’ Plan/HBP allows withdrawals up to $60,000 for a first home under current rules (Canada.ca)(canada.ca). Tech compensation cadence: RSUs typically vest on multi‑year schedules (common 4‑year programs with a one‑year cliff followed by monthly or quarterly vesting) which creates lumpy taxable events at vesting (vesting schedules guide)(waterfalls.app), and RSU value is generally treated as employment income when shares vest in Canada (tax guidance)(wise.com); annual performance bonuses for tech roles commonly range from roughly 5%–20% of base pay, with higher percentiles at senior levels (industry compensation surveys)(aeqium.com). Practical sequencing implications tied to those patterns: use FHSA mechanics to shelter five years of concentrated down‑payment savings or to accept a tax‑deduction on a lump RSU windfall and then roll unused funds into RRSP/RRIF tax‑deferred (Canada.ca)(canada.ca); park irregular or after‑tax equity proceeds in TFSA space for penalty‑free access and to regain contribution room the following year (CRA TFSA rules)(canada.ca); prioritize RRSP contributions in calendar years when base salary plus vesting pushes marginal tax rate materially higher to maximize immediate tax relief (RRSP deduction guidance)(canada.ca).
