Wealthsimple Account Types for XEQT: TFSA vs RRSP vs FHSA vs Non-Registered
Which Wealthsimple Account Should You Use for XEQT?
Choosing the right account type can save you thousands in taxes over your investing lifetime. This guide helps you decide between a TFSA, RRSP, FHSA, or non-registered account based on your personal situation.
The account you choose matters just as much as what you invest in. Let's find the best one for you.
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Answer these questions to find your best account type:
1. Are you saving for your first home?
If you've never owned a home (or haven't in the last 4 years) and plan to buy one someday, the FHSA offers unbeatable tax benefits—deductible contributions AND tax-free withdrawals.
2. Do you have TFSA contribution room?
If you're not buying a home (or have already maxed your FHSA), the TFSA is the most flexible option. Tax-free growth, tax-free withdrawals, and you can access your money anytime.
3. Are you in a high tax bracket now and expect lower income in retirement?
If your marginal tax rate is high today (30%+) and you expect it to be lower in retirement, the RRSP's tax deduction is valuable. You'll pay less tax when you eventually withdraw.
4. Have you maxed out all registered accounts?
If you've maxed your FHSA, TFSA, and RRSP, a non-registered (Personal) account lets you continue investing without contribution limits. You'll pay tax on gains, but investing is still better than not investing.
The Four Account Types Explained
TFSA (Tax-Free Savings Account)
The TFSA is the most popular account type in Canada for good reason. All investment growth, dividends, and withdrawals are completely tax-free. You can withdraw anytime for any reason without penalties.
Key features:
- 2026 contribution limit: $7,000 (plus unused room from previous years)
- Total room if 18+ since 2009: Up to $102,000
- Contributions: Made with after-tax money (no deduction)
- Withdrawals: Tax-free, anytime, for any reason
- Withdrawal room: Re-added the following calendar year
Best for XEQT because: Long-term equity growth is tax-free. XEQT's gains could compound for decades without ever being taxed—that's powerful.
FHSA (First Home Savings Account)
The FHSA is Canada's newest and most powerful savings account for first-time home buyers. It offers both tax-deductible contributions AND tax-free withdrawals—a double tax advantage you won't find anywhere else.
Key features:
- Annual contribution limit: $8,000
- Lifetime limit: $40,000
- Contributions: Tax-deductible (like RRSP)
- Withdrawals: Tax-free when used for qualifying home purchase
- Eligibility: Must be first-time buyer (haven't owned a home in 4+ years)
- Time limit: 15 years from opening or age 71
Best for XEQT because: If your home purchase is 5+ years away, XEQT's growth potential can significantly boost your down payment—all with double tax benefits.
Learn more: See our complete FHSA guide for eligibility rules, contribution strategies, and investment recommendations.
RRSP (Registered Retirement Savings Plan)
The RRSP lets you defer taxes until retirement. Contributions reduce your taxable income today, and your investments grow tax-free until withdrawal. Withdrawals are taxed as income.
Key features:
- Contribution limit: 18% of previous year's income, up to $32,490 (2026)
- Contributions: Tax-deductible (reduces your taxable income)
- Withdrawals: Taxed as regular income
- Early withdrawal: Taxed + withholding tax (except for HBP/LLP)
- Home Buyers' Plan: Withdraw up to $60,000 tax-free for first home (must repay)
Best for XEQT because: If you're in a high tax bracket now and expect lower income in retirement, you'll effectively pay less tax on your XEQT gains.
Note: If you're in a low tax bracket now, the TFSA might be better—you'd be deferring taxes to potentially pay MORE later. See our RRSP guide for details.
Non-Registered (Personal) Account
A non-registered account has no contribution limits and no restrictions on withdrawals. However, investment gains and dividends are taxable in the year they're earned or realized.
Key features:
- Contribution limit: None
- Contributions: Made with after-tax money (no deduction)
- Dividends: Taxable (Canadian dividends get preferential treatment)
- Capital gains: Taxable when you sell (only 50% of gain is included in income)
- Flexibility: Complete freedom—no withdrawal restrictions
Best for XEQT because: XEQT is tax-efficient—it distributes mostly Canadian dividends (eligible for dividend tax credit) and defers capital gains until you sell.
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| Feature | TFSA | FHSA | RRSP | Non-Registered |
|---|---|---|---|---|
| Tax on Contributions | After-tax (no deduction) | Tax-deductible | Tax-deductible | After-tax (no deduction) |
| Tax on Growth | Tax-free | Tax-free | Tax-deferred | Taxable annually |
| Tax on Withdrawals | Tax-free | Tax-free (for home) | Taxed as income | Capital gains taxed |
| 2026 Limit | $7,000/year | $8,000/year | 18% of income | Unlimited |
| Lifetime Limit | Cumulative room | $40,000 | Based on income | None |
| Withdrawal Flexibility | Anytime, any reason | For home purchase | Penalized (except HBP) | Anytime, any reason |
| Best For | Most Canadians | First-time buyers | High earners, retirement | After maxing others |
The Optimal Account Order for Most Canadians
If you can't max out all accounts, here's the typical priority order:
-
FHSA (if saving for first home)
The double tax advantage makes this the highest priority for qualifying first-time home buyers. Max out $8,000/year before anything else. -
TFSA (for everyone)
Tax-free growth and complete flexibility. The TFSA should be a priority for almost everyone, especially those in lower tax brackets or with shorter time horizons. -
RRSP (for high earners)
If you're in a 30%+ tax bracket and saving for retirement, the RRSP's tax deduction is valuable. Also useful for the Home Buyers' Plan ($60,000 tax-free for first home). -
Non-Registered (after maxing registered accounts)
No tax advantages, but investing is still better than not investing. XEQT's tax-efficient structure makes it a good choice here too.
Exception: If your employer offers RRSP matching, always contribute enough to get the full match first—that's free money. Then follow the order above.
Special Situations
Saving for a Home
If you’re saving for your first home, consider this strategy:
- FHSA first – Max out $8,000/year for the double tax advantage
- RRSP second – You can withdraw up to $60,000 via the Home Buyers’ Plan
- TFSA third – For additional savings beyond FHSA and HBP
Combined, you could have up to $100,000+ in tax-advantaged home savings (FHSA max + HBP max).
Low Income Now, Higher Income Expected
If you’re a student or early in your career with low income:
- TFSA first – Lock in tax-free growth while your tax rate is low
- Save RRSP room – Contribute to your RRSP later when your income (and tax rate) is higher
High Income, Nearing Retirement
If you’re a high earner approaching retirement:
- RRSP first – Get the tax deduction while you’re in a high bracket
- TFSA second – For flexible, tax-free income in retirement
- Non-registered – For additional savings beyond registered limits
Frequently Asked Questions
Can I have multiple account types at once?
Yes! You can (and should) have multiple account types. Most investors have both a TFSA and RRSP. If you're a first-time home buyer, add an FHSA. Each account has its own contribution limits and tax treatment.
Can I hold XEQT in any of these accounts?
Yes. XEQT can be held in any account type on Wealthsimple—TFSA, RRSP, FHSA, or non-registered. The account type doesn't limit your investment choices.
Which account is best for XEQT specifically?
XEQT is ideal for any account, but shines brightest in a TFSA or FHSA where growth is completely tax-free. Since XEQT is 100% equities with high growth potential, sheltering those gains from tax is powerful.
Should I put all my XEQT in one account?
Max out registered accounts first (FHSA → TFSA → RRSP), then use non-registered. Spreading across accounts is fine—just prioritize tax-advantaged space. You don't need different investments for different accounts.
What if I over-contribute?
Over-contributions are penalized. TFSA: 1% per month on excess. RRSP: 1% per month on amounts over $2,000 grace. FHSA: Similar rules. Wealthsimple doesn't track your limits, so check with CRA.
Can I transfer between account types?
Some transfers are possible (e.g., FHSA to RRSP), but most require selling in one account and re-buying in another. RRSP to TFSA transfers trigger taxes. Consult the specific transfer rules before moving funds.
How do I check my contribution room?
Log in to CRA My Account to see your TFSA and RRSP contribution limits. FHSA room is simpler: $8,000/year with up to $8,000 carry-forward, max $40,000 lifetime.
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The Bottom Line
The best account for most Canadians:
- First-time home buyer? → FHSA, then TFSA, then RRSP
- Not buying a home? → TFSA, then RRSP (if high income)
- High earner with employer match? → RRSP to get the match, then TFSA
- Maxed all registered accounts? → Non-registered
The most important thing is to start investing. A perfect account choice matters less than actually putting money to work. If you’re unsure, a TFSA is rarely wrong—it’s flexible, tax-free, and works for almost any goal.
Pick an account. Buy XEQT. Let it grow.
Learn More
- TFSA Guide – Everything you need to know about Tax-Free Savings Accounts
- RRSP Guide – Comprehensive RRSP guide for retirement savings
- FHSA Guide – Complete First Home Savings Account guide
- Wealthsimple Referral Bonus – How to claim your $25 bonus
- Best Broker for XEQT – Compare platforms for buying XEQT
- Start Here – Complete beginner’s guide to XEQT