A 2026 plain-English guide to Canada’s retirement accounts, and how they line up against the US 401(k) and Roth.

If you have worked in the United States, or you are moving to Canada from the US, one of the first questions you will ask is simple: where is the Canadian 401(k)? You are used to contributing pre-tax money from your paycheque, getting an employer match, and watching it grow tax-deferred. You want to know if Canada has the same thing.

The short version is that Canada does not have an account called a 401(k), but it has close equivalents that do the same job. Once you know which account maps to which, the Canadian system is easy to navigate.

The short answer

• Canada’s main retirement account is the RRSP (Registered Retirement Savings Plan). It works like a 401(k): pre-tax contributions, tax-deferred growth, taxed on withdrawal.
• The closest match to a 401(k) is a Group RRSP, an employer-sponsored plan, often with matching contributions.
• The Canadian version of a Roth 401(k) or Roth IRA is the TFSA (Tax-Free Savings Account): after-tax money in, tax-free growth and withdrawals.

You cannot open a US 401(k) in Canada, and you cannot transfer a 401(k) directly into an RRSP without triggering tax. If you already hold a 401(k) and are moving north, see our full guide to what happens to your 401(k) when you move to Canada.

Canada’s answer to the 401(k): the RRSP

The Registered Retirement Savings Plan is the backbone of retirement saving in Canada, and it behaves almost exactly like a 401(k). You contribute money before tax, which lowers your taxable income for the year. The investments grow without being taxed year to year. You pay tax only when you take the money out in retirement, when your income and tax rate are usually lower.

The main difference is how much you can put in. A 401(k) has a high employee limit set by the IRS, US$24,500 for 2026. An RRSP is more flexible in one sense and tighter in another: you can contribute up to 18 percent of your prior year’s earned income, to an annual ceiling of $33,810 for 2026. Unused room carries forward, so if you contribute less than your limit one year, you keep that room for the future. A 401(k) does not carry room forward the same way.

The closest match: the Group RRSP

If you want the account that feels most like a 401(k), it is the Group RRSP. Your employer sets it up, contributions come straight off your paycheque, and many employers match a percentage of what you put in, exactly like a 401(k) match. The money is still yours in an RRSP, so if you change jobs it moves with you. For a newcomer to Canada, signing up for the Group RRSP and capturing the full employer match is the same first move you would make with a 401(k) in the US: never leave the match on the table.

The other Canadian retirement accounts worth knowing

The RRSP is the headline, but a few other accounts fill in the picture, and some map neatly onto US plans you already understand.

TFSA: the Roth equivalent

The Tax-Free Savings Account is Canada’s answer to the Roth 401(k) and Roth IRA. You contribute after-tax dollars, and everything after that is tax-free: the growth and the withdrawals. The 2026 annual limit is $7,000, with room carrying forward from 2009 for anyone who was eligible. One important caution: if you are a US citizen or green card holder living in Canada, the IRS does not treat the TFSA as tax-free and can tax it as a foreign trust. For US persons, the TFSA is often more trouble than it is worth.

DPSP and RPP: employer pension plans

Some Canadian employers offer a Deferred Profit Sharing Plan (DPSP), where the company contributes a share of profits to your retirement, or a Registered Pension Plan (RPP), which can be a traditional defined-benefit pension or a defined-contribution plan. Both are employer vehicles with no perfect US twin, though a defined-contribution RPP behaves much like a 401(k) with employer-only or shared contributions.

FHSA: a newer, specialized account

The First Home Savings Account is newer and narrower. It is built for first-time home buyers and blends RRSP-style deductible contributions with TFSA-style tax-free withdrawals, up to $8,000 a year and $40,000 lifetime. It is not a retirement account, but it is worth knowing it exists.

401(k) vs RRSP: side by side

Feature	US 401(k)	Canadian RRSP
Contribution type	Pre-tax from payroll	Pre-tax, deducted on your return
2026 limit	US$24,500 employee limit	18% of prior-year income, up to $33,810
Unused room	Does not carry forward	Carries forward indefinitely
Employer match	Common	Common in a Group RRSP
Tax on growth	Deferred	Deferred
Tax on withdrawal	Taxed as income	Taxed as income
Early withdrawal	10% penalty before 59.5	No penalty, but withholding tax and lost room
Roth-style option	Roth 401(k)	TFSA (separate account)

Can you open a 401(k) in Canada?

No. A 401(k) is a US employer plan governed by US law, so you cannot open or contribute to one as a Canadian resident. If you are self-employed in Canada and want a 401(k)-style vehicle, your options are the RRSP, and for higher earners an Individual Pension Plan, which can allow larger tax-deferred contributions than an RRSP later in your career. The goal is the same as a 401(k): shelter income now, grow it tax-deferred, and draw it in retirement.

What if you already have a 401(k) and are moving to Canada?

This is where people get into trouble, because the instinct is to “bring it over” into an RRSP. In most cases you should not. You cannot transfer a 401(k) directly into an RRSP. The workaround, a Section 60(j) transfer, requires cashing the plan out first, which triggers US withholding of up to 30 percent and, if you are under 59 and a half, a 10 percent penalty Canada will not refund. For most people the better move is to leave the 401(k) in the US or roll it into an IRA that a cross-border advisor manages from Canada, keeping it tax-deferred the whole way. We cover this in detail in our guide on what happens to your 401(k) when you move to Canada.

Common questions

Does Canada have a 401(k)?

Not by that name. The RRSP is Canada’s equivalent, and a Group RRSP with an employer match is the closest match to a US 401(k). Both let you contribute pre-tax income, grow it tax-deferred, and pay tax on withdrawal.

What is the Canadian equivalent of a Roth IRA or Roth 401(k)?

The TFSA. You contribute after-tax money, and growth and withdrawals are tax-free. Note that the IRS does not recognize the TFSA as tax-free, so it is often a poor choice for US citizens living in Canada.

How do I roll over a 401(k) from a US employer once I am in Canada?

You generally do not roll it into a Canadian account. The cleaner path is a direct rollover into a US IRA, which keeps the money tax-deferred and can be managed from Canada by a dual-registered advisor. A direct transfer to an RRSP is possible under Section 60(j) but usually costs more than it saves.

Can I contribute to both an RRSP and a TFSA?

Yes, and most Canadians should use both. The RRSP gives you a deduction now and is best when your current tax rate is high. The TFSA gives you tax-free withdrawals later and is more flexible. Together they cover the same ground as a 401(k) plus a Roth.

What is the RRSP contribution limit for 2026?

18 percent of your prior year’s earned income, up to a ceiling of $33,810 for 2026, plus any unused room carried forward from past years.

The bottom line

Canada does not have a 401(k), but it has every piece you are looking for, just under different names. The RRSP handles pre-tax retirement saving, a Group RRSP delivers the employer match, and the TFSA covers the Roth side. If you are arriving with a US 401(k) already in hand, the smart move is almost never to force it into an RRSP. It is to keep it tax-deferred and manage it properly across the border.

Planning a cross-border move or managing money in two countries?

If you are moving to Canada with US retirement savings, or building a Canadian retirement plan from scratch, we can map the right accounts for your situation. Book a call with Sartorial Wealth, a dual-registered cross-border wealth manager: Book a call

This article is for informational purposes only and is not tax, legal, or investment advice. Cross-border rules change and depend on your personal situation. Consult a dual-registered cross-border advisor and a cross-border accountant before acting. Figures reflect 2026 rules current as of publication.