For American readers - this article deals with Canadian retirement savings vehicles. The same broad principles apply to the Roth vs Traditional debate, but the specifics of tax law are, naturally, different.

This year, the government of Canada added a new type of savings account to the arsenal of ways to reduce - or at least manage - your taxes. The Tax Free Savings Account lets you deposit up to $5000 per year and enjoy the full benefits of your investment growth, no taxes to pay. Having more options is usually a good thing, and this is no exception, but there's a lot of confusion about whether this is a better or worse option than putting your savings in an RRSP. This being investing we're talking about, there's not going to be a right and wrong answer. It all depends on your situation. So with that, a summary below on how to choose.