Tax-Free Savings Account
What is a TFSA?
From the Canada Revenue Agency; “The Tax-Free Savings Account (TFSA) program began in 2009. It is a way for individuals who are 18 and older and who have a valid social insurance number (SIN) to set money aside tax-free throughout their lifetime. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. Administrative or other fees in relation to TFSA and any interest or money borrowed to contribute to a TFSA are not tax deductible.” It is important to note that the TFSA is not an investment, it is a savings account, however investments can be made using a TFSA.
CONTRIBUTE UP TO $6,000 TAX FREE
Let your money grow tax-free and reach your savings goals faster.
If you have never contributed to a TFSA and have been eligible since its introduction in 2009, your cumulative contribution room will be $75,500 in 2021.
Your unused contribution room can be carried forward indefinitely and accumulates for use in future years.
TFSAs are a useful special-purpose savings vehicle for anyone wanting to save for a major expense, such as a renovation, car purchase, or other outlay and you don’t need earned income to contribute.
Interest, dividends, and capital gains earned in a TFSA are tax-free for life.
Your TFSA savings can be withdrawn from your account at any time, for any reason, and all withdrawals are tax-free.
If you would like to establish or contribute to a TFSA, please contact me today.
Disclaimer: The opinions expressed within this article/communication are those of the Financial Advisor and are not necessarily those of Keybase Financial Group Inc. Any data provided is for illustration purposes only. Clients and prospective clients should always read a product prospectus and fully understand all of the risks associated with the product before purchasing. Any information relating to the discussion of taxation issues is considered to be only general in nature. Clients should seek a qualified tax professional to discuss their specific tax requirements. Keybase Financial Group Inc. is a member of the MFDA and is a member of the MFDA IPC.