TFSA (Tax-Free Savings Account)
The Tax‐Free Savings Account is a registered account that allows individuals to earn investment income tax-free inside a savings account.
TFSA contributions are not tax-deductible; however, any investment income within the account will not be taxed, even when withdrawn.
Who is eligible for a TFSA?
» Be at least 18 years old;
» Be a resident of Canada for tax purposes; and
» Have a valid Social Insurance Number (SIN).
How much money you can put in?
» The annual TFSA dollar limit for the years 2009 to 2012 was $5,000.
» The annual TFSA dollar limit for the years 2013 and 2014 was $5,500.
» The annual TFSA dollar limit for the year 2015 was $10,000.
» The annual TFSA dollar limit for the years 2016 to 2018 was $5,500.
» The annual TFSA dollar limit for the year 2019 to 2020 is $6,000.
Features & Benefits:
There are no restrictions on the use of funds from your TFSA. As well, you can take money out of your TFSA at any time without paying taxes on it.
» The opportunity to earn investment income, tax-free
» Get income during retirement.
» The flexibility to withdraw your savings, tax-free
» The ability to contribute to a spouse’s TFSA
» A wide range of investment options for enhanced
» No impact to your government benefits
TFSA savings can be used to purchase a new car, renovate a house, start a small business, take a family vacation, etc.