Tax-Free Savings Account (TFSA)

The Tax-Free Savings Account (TFSA) was introduced in 2009 and offers Canadians a unique and flexible planning opportunity to save for their financial goals. Your contributions to a TFSA are not tax deductible for income tax purposes, however your savings grow tax-free inside your account. In addition, there is no tax payable when you make a withdrawal from your TFSA. The savings you accumulate in your TFSA can be used at anytime and for any purpose – it’s completely up to you. Whether you are saving for a new car or a home purchase, your child’s education or your own retirement, a TFSA can help you reach your goal sooner.


Canadians age 18 and over can contribute $5,500 annually to a TFSA ($5000 per year from 2009 to 2012, $10,000 in 2015, and $5500 in 2013-14 and 2017). Any unused contribution room, dating back to 2009 or the year you turn 18, carries forward so it can be used in a future year. Even if you didn’t contribute to a TFSA in the past, you have likely accumulated significant contribution room - up to $52,000 as of Jan 1st, 2017. Your annual TFSA contribution limit is reported on your annual Notice of Assessment from Canada Revenue Agency (CRA). In general, a TFSA is permitted to hold similar types of investments as an RRSP.


Withdrawals from a TFSA are tax-free. An amount withdrawn in the current year will be added to your contribution room at the beginning of the next calendar year. For example, assume a $15,000 contribution is made in January 2015, followed by a withdrawal of $15,900 ($15,000 contribution + $900 gain) in October 2015. On January 1, 2016, an additional $15,900 will be added to your annual TFSA contribution room.

Please contact us for more information on how to get a TFSA working for you !