What is TFSA ?In 2009, Government of Canada launch flexible investment account that allows Canadians to earn tax-free investment income to more easily meet lifetime savings needs. Investment income in a TFSA whether you are earning interest, dividends or capital gains—are not taxed, even when withdrawn. This tax-free compound growth means that your money grows more quickly inside a TFSA than in a taxable account. Unique features of TFSATax free return |
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| The return (Interest, Dividend etc) that generate from Tax free account is Tax free. There is no tax deduction for contributing to a TFSA.
Contribution Limit The annual contribution limit is $5,000. In addition, you can carry forward unused contribution room indefinitely. No Income Requirement You are not required to have earned income to contribute to a Tax-Free Savings Account. Also contribution is not depend on Your earned income. Easy & Tax free Withdraw You can withdraw your money from your account any time. Also you can reinvest same amount you withdraw in preceeding year. The withdrawal amount is tax free. Carry forward conribution Unused TFSA contribution room is carried forward and accumulates in future years. Investment Options There are plenty of investment option for TFSA. You can get benefit of High Interest Saving Account, GIC, Stocks, Bonds etc. Income splitting Although you can’t contribute directly to your spouse’s or common-law partner’s TFSA, you can give or loan them money which they can then contribute to their own TFSA. |
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