Additonal Resources

What is a TFSA?

Introduced in January 2009, the Tax Free Savings Account (TFSA) is a flexible, registered general-purpose savings plan that allows Canadians to earn tax-free investment income to more easily meet retirement and lifetime savings needs. Complementing existing registered savings plans, such as RESP and RRSP.

TFSA Explained:

  1. Canadian residents age 18 or older can contribute up to $5,000 annually to a TFSA.
  2. Investment income earned in a TFSA is tax-free.
  3. Withdrawals from a TFSA are tax-free.
  4. Unused TFSA contribution room is carried forward and accumulates in future years.
  5. Full amount of withdrawals can be put back into the TFSA in future years.
  6. TFSA assets can generally be transferred to a spouse or common-law partner upon death.

For more information, please visit www.tfsa.gc.ca