Tax-free savings account

Compound your savings... tax-free

The tax-free savings account (TFSA) is a flexible investment savings vehicle that allows you to earn investment income (including capital gains) tax-free. The account can be used to meet a variety of financial security planning needs.

Benefits for everyone

Reducing personal income tax is appealing to everyone, and the tax savings available through a TFSA along with the flexibility of the account structure can enhance the savings plans of most people: young families, retirees, higher income earners, anyone saving for a big ticket item. The money you accumulate in a TFSA can be withdrawn at any time without tax consequences.

Eligibility

Every resident of Canada who is age 18 or older and has a social insurance number is eligible to contribute to a TFSA. There is no maturity date on a TFSA (unlike an RRSP) and it doesn't need to be wound-up or converted to a different investment vehicle.

Contributions:

Starting in 2009, the annual contribution limit was $5,000, for that year, regardless of how much income you earn. Unused contribution room can be carried forward like an RRSP, so if you can't contribute in any given year you can wait and contribute larger sums in the future when you have more money available. There is a accumulated total for each year going forward from 2009 and be sure not to over contribute. Speak to your investment representative for more information on your tax free savings account.