What is a Tax Free Savings Account?
It’s a registered savings account that allows you to earn investment income tax-free!
Contributions are not tax deductible.
Who is eligible for a TFSA?
Residents of Canada, age 18 and older who have a valid Social Insurance Number.
How much can I contribute to my TFSA?
- Each year, Canada Revenue Agency will determine the available TFSA contribution
- Unused Contribution room can be used in future years. There is no limit to how much
contribution room can be carried forward
- Withdrawal will increase unused contribution room after the year of withdrawal
What if I am unable to contribute the full amount?
You would carry forward any unused contribution room. There is no minimum contribution
Can I open a TFSA with my spouse?
No, contributions may only be made by the holder of the account; no spousal contributions.
When can I withdraw my money?
You can withdraw at anytime for any reason. Withdrawals are not taxable.
What investments are eligible for the TFSA?
Generally the same investments as a RRSP, including GICs, Bonds, Mutual Funds, Publicly
traded securities and certain shares of small business corporations.
How is the TFSA different from a RRSP?
RRSPs are income tax deductible. TFSAs are not tax deductible.
Is it more beneficial to contribute to a TFSA, RRSP or pay down my mortgage?
Your account manager or Advisor at VantageOne will be pleased to discuss individual needs to
find the right solution for you.
Can I take out a loan to start or boost a TSFA?
Yes. We offer TFSA loans. Learn more here.