TFSA
Tax-Free Savings, Amplify Your Financial Freedom
A TFSA is a savings account that can hold cash as well as various investments.
Your TFSA contributions come from your “after-tax” dollars (money you have left after your taxes are paid). This means you won’t have to pay tax when you take money out of your TFSA.
In addition, any TFSA investments you have, grow tax-free within the account. This means there’s no tax on the TFSA growth even when you withdraw funds.
You can use money from your TFSA at any time, for any purpose.
For example, you can use it to fund:
- a cottage,
- a wedding,
- the cost of childcare,
- the cost of healthcare,
- an emergency,
- retirement, etc.
- $6,500 (as of 2023),
- anything withdrawn the previous year (with the exception of certain qualifying transfers and distributions),
- and all unused contribution room from previous years.
Life Insurance
Living Benefits
Travel Insurance
Savings & Investments
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FAQ
You can view your TFSA contribution limit on the notice of assessment given to you by the Canada Revenue Agency (CRA). The CRA provides you with this notice every year after processing your tax return.
Remember, your TFSA contribution limit is the total of three amounts:
• $6,500 (as of 2023);
• anything withdrawn the previous year (with the exception of certain qualifying transfers and distributions);
• and all unused contribution room from previous years.
Remember, your TFSA contribution limit is the total of three amounts:
• $6,500 (as of 2023);
• anything withdrawn the previous year (with the exception of certain qualifying transfers and distributions);
• and all unused contribution room from previous years.
No, withdrawals are tax-free.
No. Since withdrawals aren’t taxable, you don’t have to report them as income.
If you don’t have room, wait and put the money back in the next year.
If you contribute more than your limit, you’ll receive a 1% penalty for each month you are over the limit.