Tax Free Savings Account
A TFSA (Tax Free Savings Account) is a registered investment.
It can be any variety of investments. Savings account, stocks, GIC`s, Funds just to name a few.
While there are no tax deductions on deposits into a TFSA, there is no tax on the growth and there is no tax on the withdrawals.
The TFSA began in 2009 with a contribution maximum of $5,000 / year. In 2013 the limit was raised to $5,500
Every Canadian over the age of 18 is entitled to contribute to a TFSA regardless of income level and unused contribution room carries forward indefinitely. Therefore any Canadian who was 18 or older in 2009 (and hasn’t yet opened a TFSA) has contribution room of $25,500.
On top of this, any withdrawals that have been made from a TFSA, can be `replaced` in the next calendar year or beyond.
Here’s the governments rules and regulations regarding TFSA’s :
For more information, please give us a call 1.866.493.3083
For more information about TFSA's
- Visit the question and answer page on the Canada Revenue Agency website.
- Download the pdf entitled "Tax-Free Savings Account"