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The key idea is how tax savings and taxes are handled at different stages for RRSPs and TFSAs. An RRSP lets you deduct contributions from your taxable income in the year you contribute, giving an immediate tax saving. The money inside grows tax-deferred, but when you withdraw, that money is taxed as ordinary income in the year of withdrawal. A TFSA, on the other hand, does not give a tax deduction for contributions, but the investments inside grow completely tax-free, and withdrawals are also tax-free. The room used for TFSA contributions isn’t permanently lost—withdrawals free up room in future years, whereas RRSP withdrawals are taxed and don’t offer the same repayment of tax relief.

So the statement that matches is that RRSP contributions are tax-deductible and taxed on withdrawal, while TFSA contributions are not deductible and withdrawals are tax-free. Other options misstate either the deductibility or the tax treatment of withdrawals.