Tax Free Savings Account (TFSA)

If you’ve already made your annual RRSP contribution to reduce your taxable income and are still looking for a tax-free savings growth opportunity, then a TFSA may be the answer. Capital gains in the form of interest and, dividends grow tax-free for life and they aren’t taxed at withdrawal either.

 

Features

  • 1- to 5-year terms or open savings available
  • Must be at least 18 years of age with a valid social insurance number
  • Contributions are not tax deductible, but the investment income earned in your TFSA is tax-free, even upon withdrawal
  • Unused contribution room can be carried forward to future years
  • Withdrawn amounts can be redeposited in the following year without reducing your contribution room
  • Contributions and withdrawals will not affect your eligibility for federal benefits like the Guaranteed Income Supplement and Canada Child Tax Benefit
  • TFSA assets can be transferred to your spouse or partner upon your death without impact to the survivor’s contribution room
  • CRA penalties of 1% per month will apply to any over-contribution
  • Depositors are fully protected by the Deposit Insurance Corporation of Ontario (DICO)

If you would like more information or are ready to invest, please call or visit our Main Branch and speak with one of our Wealth Advisors.