Account Types and Tax Treatment

cinder.fi models every major registered and non-registered account type for both Canada and the US. Each account has distinct 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 starting at 72
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 $31,560 (2024), minus pension adjustment
TFSA room: $7,000/year (2026), cumulative if unused
FHSA room: $8,000/year, up to $40,000 lifetime
RRIF minimums: Start at 5.28% at age 71, rising to 20% at age 95+
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: $23,500 (2025), plus $7,500 catch-up (50+), plus $11,250 enhanced catch-up (60–63)
IRA limit: $7,000 (2025), plus $1,000 catch-up (50+)
Roth IRA income limits: Phase-out starts at $150,000 single / $236,000 married (2025)
RMDs: Required at age 73 for Traditional IRA, 401(k), and Roth 401(k) — or age 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 based on 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 — Warning when retirement is within the 3-year window
FHSA transfer deadlines — Reminder of the 15-year or age-71 transfer requirement

Integrations

YNAB: Live sync of account balances, transactions, and category budgets
Coming soon: Wealthica, Open Banking

April 8, 2026 · 3 min read