Account Types and Tax Treatment
cinder.fi models the registered and non-registered account types used in Canada and the US. Each has its own tax rules for contributions, growth, and withdrawals.
Canadian Account Types
| Account | Tax on Contribution | Tax on Growth | Tax on Withdrawal | Mandatory Withdrawals |
|---|---|---|---|---|
| RRSP | Deductible | Tax-deferred | Ordinary income | Convert to RRIF by Dec 31 of year you turn 71 |
| TFSA | Not deductible | Tax-free | Tax-free | None |
| LIRA | N/A (locked-in) | Tax-deferred | Ordinary income | Convert to LIF by Dec 31 of year you turn 71 |
| RRIF | N/A (converted from RRSP) | Tax-deferred | Ordinary income | Annual minimums from the year after you open it (age 72 at the latest) |
| FHSA | Deductible | Tax-free | Tax-free (for home purchase) | Transfer to RRSP at 71 or 15-year mark |
| RDSP | Not deductible (grants are govt-funded) | Tax-deferred | Partially taxable | LDAP payments start at 60, full withdrawal by 80 |
| Spousal RRSP | Deductible to contributor | Tax-deferred | Ordinary income (to annuitant, if 3-year rule satisfied) | Same as RRSP |
| DC Pension | Employer/employee contributions | Tax-deferred | Ordinary income | Same as RRIF rules |
| Non-registered | Not deductible | Taxable annually (interest, dividends, capital gains) | Capital gains at 50% inclusion | None |
Key Canadian Rules
- RRSP room: 18% of prior year earned income, up to $33,810 (2026), minus pension adjustment
- TFSA room: $7,000/year (2026), cumulative if unused
- FHSA room: $8,000/year, up to $40,000 lifetime
- RRIF minimums: 5.28% of the balance at age 71, rising to 20% at 95 and over
- OAS clawback: RRSP/RRIF withdrawals count; TFSA does not
- GIS eligibility: RRSP/RRIF withdrawals clawed at 50%; TFSA exempt
US Account Types
| Account | Tax on Contribution | Tax on Growth | Tax on Withdrawal | Mandatory Withdrawals |
|---|---|---|---|---|
| Traditional 401(k) | Pre-tax (deductible) | Tax-deferred | Ordinary income | RMDs at 73, or 75 if born 1960+ (SECURE 2.0) |
| Roth 401(k) | After-tax | Tax-free | Tax-free (qualified) | RMDs at 73 / 75 (can roll to Roth IRA to avoid) |
| Traditional IRA | Deductible (income limits apply) | Tax-deferred | Ordinary income | RMDs at 73, or 75 if born 1960+ |
| Roth IRA | After-tax | Tax-free | Tax-free (qualified) | None during owner’s lifetime |
| HSA | Deductible | Tax-free | Tax-free (medical); ordinary income (non-medical, after 65) | None |
| Taxable brokerage | Not deductible | Taxable annually | LTCG rates (0%/15%/20%) + NIIT (3.8%) | None |
Key US Rules
- 401(k) limit: $24,500 (2026), plus $8,000 catch-up (50+), or $11,250 enhanced catch-up (60–63)
- IRA limit: $7,500 (2026), plus $1,100 catch-up (50+)
- Roth IRA income limits: Phase-out starts at $153,000 single / $242,000 married (2026)
- RMDs: Required at age 73 for Traditional IRA, 401(k), and Roth 401(k), or 75 if you were born in 1960 or later (SECURE 2.0)
- Early withdrawal penalty: 10% before age 59½ (with exceptions)
- Social Security taxation: Up to 85% of benefits taxable based on combined income
- IRMAA: Medicare premium surcharges above $109,000 MAGI (single)
Managing Accounts in cinder.fi
Individual Account Tracking
You can add multiple accounts per type (e.g., two RRSP accounts at different brokerages). Each appears separately in the Accounts view with its own balance.
Cash and Debt Accounts
Checking, savings, and credit card accounts track cash positions. Personal loans, student loans, and auto loans track as liabilities. Both contribute to your net worth calculation but don’t feed the projection engine.
Account Insights
The Accounts tab shows personalized insights:
- Contribution priorities: which accounts to fund first, given your tax situation
- Unused room alerts: RRSP/TFSA/HSA room you haven’t used
- Clawback warnings: when RRIF withdrawals would reduce GIS
- Spousal RRSP attribution: a warning when retirement is within the 3-year window
- FHSA transfer deadlines: a reminder of the 15-year or age-71 transfer requirement
Contribution Room
The Room card (Accounts → Investments) shows each person’s room for the year: what you started with, what contributions used and what is left, with a warning before you over-contribute. It’s free.
- Next year’s RRSP room: an estimate: what you’ll have left on December 31, plus 18% of this year’s earned income up to next year’s limit, minus your pension adjustment. A DC pension’s contributions count as its pension adjustment; if you’re in a defined-benefit plan, enter the figure from box 52 of your T4.
- A new tax year: the first time you open cinder.fi in January, last year’s room carries forward as an estimate (RRSP by the formula above, TFSA with the new limit and last year’s withdrawals added back, FHSA with up to $8,000 carried forward). Replace it with the figure on your notice of assessment or in CRA My Account when you have it. US room starts again at the new year’s IRS limits.
Integrations
- YNAB: Live sync of account balances, transactions, and category budgets
- Coming soon: Wealthica, Open Banking
· 3 min read