Tax-Free Savings Account (TFSA)
A Tax-Free Savings Account (TFSA) is a tax-advantaged savings plan for individuals who are 18 years of age or older to set money aside, tax-free, throughout their lives. You pay no taxes on income, interest, or withdrawals.
A TFSA is a great way to save for both your short and long-term future goals.
Benefits of a TFSA
Learn more about the ways that opening an RRSP can benefit you.
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No Tax on Earnings
The flexibility of a TFSA allows you to withdraw your money at any time without having to pay any fees or taxes.
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Year to Year Carry Over
Any unused contribution room left over can be carried forward to the next year.
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Re-Contribute Amount Withdrawn
Making a withdrawal does not result in lost TFSA contribution room. Withdrawals you make in the year will be added to your unused contribution room.
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Tax Free Withdrawals
Any income, capital gains and dividends you earn are yours to keep!
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No Age Limit Restriction
Unlike an RRSP, you can continue to contribute well into your golden years.
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Income Equality
No matter your income, the contribution for a TFSA is the same. Which is great for those with lower income wanting to tax-shelter a higher percent of their earnings.
TFSA's At A Glance
Maximum Contribution Limit - $95,000
- If you have never contributed to a TFSA and have been eligible since its introduction in 2009, your cumulative contribution room will be $95,000 in 2024.
- You begin earning contribution room from age 18 and must have a valid social insurance number (SIN).
2024 Contribution Limit - $7,000
- The Annual contribution limit can change from year to year.
- The flexible nature of TFSA’s can offer many advantages for any future goal – both short-term and long-term.
- Whether you are buying your first home or would like to put some money aside for travel. A TFSA can help you get one step closer to these goals.
- Everyone has different financial aspirations and your investment plan should reflect this.