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A tax-smart way to save for your family’s future

With the Tax-Free Savings Account (TFSA), you can contribute up to $5,500 annually ($5,000 for the years 2009 to 2012) and earn tax-free investment income.


Who can open a TFSA?

Any Canadian resident 18 years or older with a Social Insurance Number.

The age of majority is 19 for residents of Newfoundland and Labrador, New Brunswick, Nova Scotia and British Columbia which may delay the opening of a TFSA. However, the accumulation of contribution room will start at age 18.


What are the benefits?

  • Tax-free investment income, including interest, dividends and capital gains
  • Annual contributions of $5,500 – indexed to inflation ($5,000 for the years 2009 to 2012)
  • Any unused contribution room can be used in future years
  • No upper age restriction on contributions unlike an Registered Retirement Savings Plan (RRSP)
  • Make withdrawals any time for any purpose (e.g. car purchases, vacations, home renovations)
  • Previous year’s withdrawals are added back to your unused contribution room
  • Income earned and withdrawals have no impact on federal income-tested benefits or credits (Guaranteed Income Supplement, Child Tax Benefit, Old Age Security, etc.)
  • Canadians can contribute to their spouse’s or common-law partner’s TFSA subject to available contribution room

What are the considerations?

  • Unlike an RRSP, contributions are not tax deductible
  • Capital losses within the TFSA cannot be used to offset taxable capital gains outside the TFSA
  • Interest on funds borrowed to fund the TFSA is not tax deductible
  • Penalty tax on excess contributions

What investments are qualified for the TFSA?

Cash, mutual funds, guaranteed investment certificates (GICs), publicly traded securities, and government and corporate bonds.


Take the next step…talk to an advisor to open your TFSA today.

Our Investment Advisors are here to help recommend the solutions that are best for you. To learn more, please contact an advisor today. Or, ask an advisor to contact you.