Tax Free Savings Account (TFSA)
Since January 2009, the TFSA has allowed any Canadian resident 18 years and older to save up to $5,000.00 a year Tax-Free. Here are a few key features of a TFSA:
- Any unused contribution room can be carried over to future years.
- Investment earnings and growth is tax-free even when withdrawn
- Power to save without paying taxes on the growth of your investments or impacting your eligibility for government income based benefits.
- Withdrawals can be made at any time and for any purpose without incurring withholding tax.
- Withdrawals can be re-contributed into your TFSA in the following year
- Contributions are not tax-deductible for income tax purposes
- Eligible investments include Mutual Funds and Segregated Funds
As the next generation of tax shelters, the TFSA has the potential to change the way Canadians manager their savings and income plans. With a TFSA you have the opportunity to save, grow and access your money; at any time; for any purpose; tax-free for life. Whether you want to shelter the growth of your investment from taxes or need ore tax-free income to elevate your lifestyle, the TFSA can work for you regardless of your age group, tax bracket or financial plans.
If you have not already done so, please give us a call to discuss setting up a new account or transferring an existing account from another institution to your account with us currently.