• Office Hours (Mon to Fri)

    09:00 am to 5:00 pm

  • Contact Us

    905-232-9331

  • Quotes

Tax Free Savings Account (TFSA)

A TFSA is an account that provides tax benefits for saving. Investment income, including capital gains and dividends, earning in a TFSA is not taxed in most cases, even when withdrawn. TFSA with substantial gain could be taxed. Contributions to a TFSA are not deductible for income tax purposes, unlike contributions to a Registered Retirement Savings Plan (RRSP). A TFSA may contain cash and/or other investments such as mutual funds, certain stocks, bonds or guaranteed investment certificates (GIC).

  • Individuals can contribute up to $5,500.00 tax-free
  • Individuals are not required to have earned income to contribute
  • Individuals can withdraw money for any reason – without being taxed
  • Individuals can choose from a variety of investment options such as mutual funds, GICs and savings deposits
  • Individuals don’t lose the contribution room if they make a withdrawal, but they do need to wait until the next year to re-contribute the money
  • Individuals can provide funds to their spouse for him or her to contribute to a Tax-Free Savings Account without being subjected to income attribution rules
  • If an individual does not contribute the maximum amount, they can carry forward their unused contribution room indefinitely. For example, if an individual contributed $2,500.00 to their TFSA in 2016, their contribution room for 2017 would be $7,500.00 ($2,500.00 carried forward from 2016 plus $5,000.00 for 2017)