Tax Free Savings account (TFSA)

Tax Free Savings account (TFSA)

A TFSA is a registered investment or savings account that was introduced by the federal government in 2008. It is a flexible investment account with contribution limits or “room”, that allow an individual to earn tax-free investment income and capital gains in the account.

Canadian residents aged 19 years or older with a social insurance number (SIN) can open a TFSA. Contributions to a TFSA are not tax deductible, withdrawals are tax free and you regain your contribution room the following year. You do not need earned income to accumulate contribution room. There is no requirement for TFSA to covert to any other plan at any age. The advantages of TFSA:

  • TFSA give Canadian residents financial and tax planning options outside of taxable investment accounts and Registered Retirement Savings Plan (RRSP).
  • TFSA withdrawals are not taxed and not included in taxable income, meaning there is no impact on the income-tested benefits from the federal government such as Old Age Security (OAS) and Guaranteed Income Supplement (GIS).

Interested in setting up a TFSA, Call us at 604-495-9090  or  Send a message for a call back.