Tax Free Savings Account
TFSA contribution limit changing
Under proposed legislation, the annual TFSA dollar limit for 2016 is decreasing from $10,000 to $5,500. The TFSA dollar limit in 2015 is $10,000.
- For more information http://www.cra-arc.gc.ca/tfsa/
Saving just got a whole lot easier!
The Tax-Free Savings Account is a flexible, registered general-purpose savings vehicle that allows Canadians to earn tax-free investment income to more easily meet lifetime savings needs. The TFSA complements existing registered savings plans like the Registered Retirement Savings Plans (RRSP) and the Registered Education Savings Plans (RESP).
How does the Tax-Free Savings Account Work?
Canadian residents age 18 or older can contribute up to $5,500 annually to a TFSA. Investment income earned in a TFSA is tax-free. Withdrawals from a TFSA are tax-free. Unused TFSA contribution balance is carried forward and accumulates in future years. Full amount of withdrawals can be put back into the TFSA in future years.
TFSA's are available in a wide range of investment options including mutual funds and Guaranteed Investment Certificates (GICs). Contributions are not tax-deductible. Neither income earned within a TFSA nor withdrawals from it affect eligibility for federal income-tested benefits and credits, such as Old Age Security, the Guaranteed Income Supplement, and the Canada Child Tax Benefit. Funds can be given to a spouse or common-law partner for them to invest in their own TFSA. TFSA assets can generally be transferred to a spouse or common-law partner upon death.
Securities and securities related financial planning services are offered through Qtrade Advisor, a division of Qtrade Securities Inc., Member of the Canadian Investor Protection Fund.