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What is Tax Free Saving Account (TFSA)

 

Effective January 2009 you can grow your savings tax free using Tax Free Saving Account. you will have another great way to grow your savings. With the introduction of the new Tax-Free Savings Account (TFSA) by the Federal Government, Canadian residents age 18 and older will be able to contribute up to $5,000 per year without being taxed on investment income or capital gains. And while there is no tax deduction for contributions, the Tax-Free Savings Account is extremely flexible and can be used to help meet both short- and long-term investment goals.
Key Benefits of the Tax-Free Savings Account: Contribute up to $5,000 per year tax-free
You are not required to have earned income to contribute Withdraw money for any reason – without being taxed
Choose from a variety of investment options: RBC Funds, RBC GICs and RBC Savings Deposits
You don't lose the contribution room if you make a withdrawal, but you do need to wait until the next year to re-contribute the money.

 
You can provide funds to your spouse for him or her to contribute to a Tax-Free Savings Account without being subjected to income attribution rules If you don’t contribute the maximum amount,

  • 2016 limit is $5,500 (same for 2017)
  • 2015 limit of $10,000 
  • Accumulated contribution limit: $46,500 in 2016, and $52,000 in 2017

Please ask us if you have any question.