How TFSA's work:
The Tax-Free Savings Account (TFSA) is a flexible, registered, general-purpose
savings vehicle that allows Canadians to earn tax-free investment income to
more easily meet lifetime savings needs. The TFSA complements existing
registered savings plans like the Registered Retirement Savings Plans (RRSP)
and the Registered Education Savings Plans (RESP). Talk to me about how I can
help you set up a TFSA today.
• Investment income earned in a TFSA is tax free
• Withdrawals from a TFSA are tax free
• Unused TFSA contribution room is carried forward and accumulates in future
years
• Full amount of withdrawals can be put back into the TFSA in future years.
Re-contributing in the same year may result in an over-contribution amount which
would be subject to a penalty tax.
• Choose from a wide range of investment options such as mutual funds, Guaranteed
Investment Certificates (GICs) and bonds.
• Contributions are not tax-deductible.
• Neither income earned within a TFSA nor withdrawals from it affect eligibility
for federal income-tested benefits and credits, such as Old Age Security, the
Guaranteed Income Supplement, and the Canada Child Tax Benefit.
• Funds can be given to a spouse or common-law partner for them to invest in
their TFSA.
• TFSA assets can generally be transferred to a spouse or common-law partner upon
death.
savings vehicle that allows Canadians to earn tax-free investment income to
more easily meet lifetime savings needs. The TFSA complements existing
registered savings plans like the Registered Retirement Savings Plans (RRSP)
and the Registered Education Savings Plans (RESP). Talk to me about how I can
help you set up a TFSA today.
• Investment income earned in a TFSA is tax free
• Withdrawals from a TFSA are tax free
• Unused TFSA contribution room is carried forward and accumulates in future
years
• Full amount of withdrawals can be put back into the TFSA in future years.
Re-contributing in the same year may result in an over-contribution amount which
would be subject to a penalty tax.
• Choose from a wide range of investment options such as mutual funds, Guaranteed
Investment Certificates (GICs) and bonds.
• Contributions are not tax-deductible.
• Neither income earned within a TFSA nor withdrawals from it affect eligibility
for federal income-tested benefits and credits, such as Old Age Security, the
Guaranteed Income Supplement, and the Canada Child Tax Benefit.
• Funds can be given to a spouse or common-law partner for them to invest in
their TFSA.
• TFSA assets can generally be transferred to a spouse or common-law partner upon
death.