Back to Learn TFSA & Non-Registered

Draw order priorities, in plain terms

Which account you pull from first changes your lifetime tax by tens of thousands of dollars. Here is the logic behind the order.

The general priority

•1. Guaranteed income first — CPP, OAS, pension (you're getting it regardless).
•2. Tax-deferred (RRSP/RRIF/LIF) up to a target — to fill low brackets and satisfy minimums.
•3. Non-registered — partially taxed (50% capital gains), so it's relatively cheap to draw.
•4. TFSA last — tax-free, and withdrawals don't raise your income for clawback purposes.

Why TFSA goes last

•TFSA withdrawals add nothing to your taxable income, so they never trigger clawback or bracket jumps.
•Saving it for years when taxable income is already high (or for late retirement) maximizes its value.
•It's also the natural overflow bucket for RRIF surplus you reinvest.

Why RRSP comes before 71

•Before 71, RRSP withdrawals are voluntary — you control the amount and the tax year.
•After 71, the RRIF minimum is forced, so you lose that control. Drawing early preserves it.

See the order in action

The Strategy Feed shows exactly which account funds each year of your plan.