Tax-Free Savings Account (TFSA)
The Tax-Free Savings Account (TFSA) allows Canadians, age 18 and over, to set money aside tax-free throughout their lifetime. Each calendar year, you can contribute up to the TFSA dollar limit for the year, plus any unused TFSA contribution room from the previous year, and the amount you withdrew the year before.
The annual TFSA dollar limit for 2017 is $5,500.*
All income earned and withdrawals from a TFSA are generally tax-free. Plus, having a TFSA does not impact federal benefits and credits. It's a great way to save for short and long-term goals.
To learn all the facts, please contact me.
* For more information, please visit Canada Revenue Agency's TFSA website.
TFSA Investment Options
The TFSA is a Registered Plan "Wrapper". Much like and RRSP "wrapper" You may invest in a number of different investment options. You may choose a savings account at the bank, or an investment account with mutual funds or securities. TFSA Accounts are a very important savings option for money outside of an RRSP.
An interesting feature of an RRSP is the ability to name a beneficiary or in the case of a spouse, to name a successor owner. For more information: