You are more experienced now, your bank account is larger, and it is easier to think further ahead.
The TFSA is a registered savings account that allows taxpayers to earn investment income tax-free inside the account. Contributions to the account are not deductible for tax purposes, and withdrawals of contributions and earnings from the account are not taxable.
Any individual (other than a trust) who is resident in Canada, is 18 years of age or older, and has a valid SIN, is eligible to establish a TFSA.
Each year individuals can contribute an amount up to their contribution room for the year. Your contribution room would be made up of three amounts:
A TFSA is permitted to hold the same investments as a registered retirement savings plan. This includes mutual funds, GICs, fixed income investments and certain shares of small business corporations.
The CRA will determine TFSA contribution room (based on information provided by issuers) for each eligible individual who files an annual T1 individual income tax return.
For more details about how you can benefit from the a Tax Free Savings Account please contact our office.
For answers to other Frequently Asked Questions visit the website link below:
You are more experienced now, your bank account is larger, and it is easier to think further ahead.
Without barely a moment’s thought, you would protect your family from an immediate threat.
Do you ever feel like life is too automated? Maybe you’re suspicious of the cruise control feature on your car.
You have worked all your life and saved for retirement. What other planning work could possibly be left?
