TFSA, RRSP or taxable: dividend placement optimizer
What you hold
Room and tax
Lowest-drag placement for this year
Tax + withholding, optimized
$321
If filled in the order listed
$850
Saving vs listed order
$529
All non-registered
$1,898
| Holding | TFSA | RRSP / RRIF | Non-registered |
|---|---|---|---|
| Canadian dividend stocks | $40,000 | $0 | $80,000 |
| US dividend stocks | $0 | $80,000 | $0 |
| GICs and bonds | $60,000 | $0 | $0 |
| Income type | TFSA | RRSP / RRIF | Non-registered |
|---|---|---|---|
| Canadian eligible dividends | $0.00 | $0.00 | $8.92 |
| Canadian non-eligible dividends | $0.00 | $0.00 | $22.38 |
| US dividends | $15.00 | $0.00 | $31.48 |
| Interest (GICs, bonds, cash) | $0.00 | $0.00 | $31.48 |
- US dividends usually belong in the RRSP: the Canada–US treaty exempts them from US withholding there, while a TFSA loses 15% for good.
- Interest is taxed at your full marginal rate outside registered accounts, so it gains the most from shelter; eligible Canadian dividends gain the least, thanks to the dividend tax credit.
- This looks at this year's tax only. RRSP withdrawals are taxed later as ordinary income whatever they hold; growth expectations, liquidity and contribution room also matter. Estimate, not advice.
TFSA, RRSP or taxable: dividend placement optimizer · Powered by HighDividendPayingStocks.com · MITEY