A Tax Free Savings Accounts (TFSA) is a flexible, registered general-purpose savings product that allows Canadians to earn tax-free investment income.

All Canadian residents age 18 or older can contribute up to $5,500 annually to a TFSA.

Here are some benefits:

  • Withdrawals from a TFSA are tax-free.
  • Unused TFSA contribution room is carried forward and can be used in future years without penalty.
  • Choose from a wide range of investment options such as a Daily Savings Account, Mutual Funds, Guaranteed Investment Certificates (GICs) or Bonds.
  • Contributions are not tax-deductible.
  • Funds can be transferred or given to a spouse or common-law partner for them to invest in their TFSA.
  • TFSA assets can generally be transferred to a spouse or common-law partner upon death.
  • You can designate a beneficiary
  • Any interest or income earned does not affect your eligibility for Old age Security (OAS) or Canada Pension Plans ( CPP)
  • TFSA contribution room is tracked and reported on your notice of assessment. ( NOA)
  • Your income tax return must be filed each year to qualify for your annual contribution amount.