Three friends, Jenna, Michael & Alice are debating whether an RRSP or a TFSA would be a better choice for them. Each of them is the same age $($e$.$g$.40$ years old$)$ and is saving for a goal that is $15$ years into the future $($retirement$).$ Jenna has an income of $$100,000,$ Michael has an income of $$70,000$ and Alice$$s income is $$40,000.$ After the target date, Jenna expects to have an income of $$70,000,$ Michael expects to be earning about the same and Alice expects to be earning $$70,000.$ Assume they planning to contribute $$5,000,$ and they face different income tax brackets based on their income levels. For example, the Federal Tax Rates for $2020$ are as follows:

Federal tax rates for $2020$

$15\%$ on the first $$48,535$ of taxable income, plus

$20\mathrm{.}5\%$ on the next $$48,534$ of taxable income $($on the portion of taxable income over $48,535$ up to $$97,069),$ plus

$26\%$ on the next $$53,404$ of taxable income $($on the portion of taxable income over $$97,069$ up to $$150,473),$ plus

$29\%$ on the next $$63,895$ of taxable income $($on the portion of taxable income over $150,473$ up to $$214,368),$ plus

$33\%$ of taxable income over $$214,368$

Provincially, the Ontario tax rates are as follows:

$5\mathrm{.}05\%$ on the first $$44,740$ of taxable income, $+$

$9\mathrm{.}15\%$ on the next $$44,742,$

$11\mathrm{.}16\%$ on the next $$60,518,+$

$12\mathrm{.}16\%$ on the next $$70,000,+$

$13\mathrm{.}16\%$ on the amount over $$220,000$