1. John does not understand how a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA) and a work. Respond with either Yes or No in each box below. (3 marks-.125 marks each)

Question	RRSP	TFSA
Age limit to contributing
Age requirement to start contributing
Need earned income to contribute
Contributions are tax deductible
Withdrawals are taxable
Report contributions on your tax return
Report withdrawals on your tax return
Report your annual investment earnings (interest, dividends, capital gains) on your tax returns
Interest on a loan is tax deductible
If overcontribute by over $2,000, there is a penalty of 1% per month to pay above this amount
No grace amount of $2,000; any amounts over the limit are subject to the penalty of 1% per month based on the highest excess for the month
Requirement to convert to a Registered Retirement Income Fund (RRIF) or an annuity at a later date