Overview

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contributions are not tax-deductible; however, any investment income within the account will not be taxed, even when withdrawn.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.