TFSA (Tax Free Savings Account)
A Tax-Free Savings Account (TFSA) is a registered account with specific tax advantages:
The Features of a TFSA Include:
- Helps you save - For short or long-term goals
- Tax-free – Investment income and capital gains earned in a TFSA are not taxed, even when you withdraw money from the account. This makes investments with higher returns more attractive.
- What investments are eligible? – A TFSA can hold a combination of eligible investments, such as mutual funds, stocks, bonds and ETFs *, Guaranteed Investment Certificates (GICs) and cash.
- How much can I contribute annually? – Click here to determine the annual limit of your TFSA contributions.
- How much can I contribute from past unused room? – You can carry forward the unused contribution amount to future years.
- Does it affect my government benefits? – Income earned and withdrawals made from a TFSA do not affect your eligibility for federal tax credits or income-tested benefits such as the Canada Child Tax Benefit, Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).
- Beneficiary considerations – You can set up the account’s assets to transfer directly to your spouse or common-law partner upon your death, as long as he or she is named beneficiary on your TFSA.
- Information on TFSAs from the CRA website
- Ask us today about our GIC deposit rates!
*Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Commissions, trailing commissions, management fees, and expenses may all be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds, other securities, and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.Credential Securities is a registered mark owned by Aviso Wealth Inc.