The Tax-Free Savings Account (TFSA) – Your ideal dreams saver

Why splurge on an item that depreciates over time when you can invest in your future by topping up your TFSA. It’s that time of year to make an investment in you.

In 2009, the government introduced the TFSA program, designed to help you save throughout your lifetime. Flexible features and reduced taxes make this registered account one of the best ways to save for your dreams.

Why use a TFSA to save?

  • You pay no tax on interest, income or capital gains earned within your TFSA.
  • Withdrawals from your TFSA are completely tax free.
  • Your contribution room is restored the year after you make a withdrawal.
  • Income-tested credits and benefits such as the GST credit, Employment Insurance and Old Age Security are not affected by withdrawals from your TFSA.
  • Canadians age 18 or older in 2009, who have not yet contributed, have $69,500 of contribution room in 2020.


Who will benefit from a TFSA?

The TFSA is a powerful savings tool that benefits most Canadians.

  • Young adults:If you’re just starting out, a TFSA is an excellent way to save for a car, wedding or your first home.
  • Middle-aged adults:You can take advantage of tax-free savings to establish an emergency fund or save for a family vacation, home renovation, or supplement a child’s education savings.
  • Seniors:Use a TFSA to fund additional income during retirement or as a savings vehicle to replace RRSP contributions, which are not allowed past age 71.
  • Low income earners:If you withdraw from a TFSA, your eligibility for income-tested benefits will be unaffected.
  • High income earners:The TFSA is an excellent savings vehicle for those who have maximized their RRSP contributions but still want to save more for retirement.

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