Tax Free Savings Account (TFSA)


The annual TFSA dollar limit for 2018 is $5,500.
Learn more about TFSA contributions

 

We believe the Tax Free Savings Account (TFSA) is the greatest investment opportunity since the introduction of Registered Retirement Savings Plans (RRSPs)!

Although referred to as an account, it's essentially an investment plan that allows you to grow your savings without having to pay taxes, and the funds can be accessed at any time. As of 2018, all Canadian residents who are at least 18 years old can contribute $5,500* annually. The best part is that you can carry forward your contribution room indefinitely, and any withdrawals are added back to your contribution room the following year. Start saving today, tax-free!

Why Invest in a TFSA? Expand/Collapse

A TFSA can help you save for any purpose because there are no restrictions on how you use the funds and you can withdraw them at any time. Save for a home, a car, your retirement, to start a small business or even a vacation.

Here's how it works:

  1. Contribution: Contribute up to $5,500*.  If you didn't reach your annual contribution limit, no problem.  Unused TFSA contributions can be carried forward indefinitely. 
  2. Tax Savings: Returns on your investments are tax-free including interest and income earned in your TFSA
  3. Withdrawals: You can take money out of your TFSA and you won't be taxed on these withdrawals. The amount you withdraw also becomes available as part of your contribution room the following year.

Eligible Products Expand/Collapse

Any resident of Canada 18 years and older can open a TFSA.  Similar to a Registered Retirement Savings Plan, you choose from a range of investments to hold in your TFSA:

If you're not sure what is best for you, speak to one of our financial experts.

Credential Asset Management 

*Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.

Contribution Limits Expand/Collapse

Tax Year

Contribution Limit*

2009

$5,000

2010

$5,000

2011

$5,000

2012

$5,000

2013

$5,500

2014

$5,500

2015

$10,000

2016

$5,500

2017

$5,500

2018*

$5,500*
 * Source TFSA contributions - Canada.ca

Comparison: TFSA vs RRSP Expand/Collapse

TFSA

RRSP

At what age can I start contributing? You must be 18 years old and a Canadian citizen. When you have declared income and filed a tax return.
How much can I contribute per year? $5,500* (2018 limit) 18% of the previous year's income
If I put in less than the limit one year, can I make up for it the next year? Yes Yes
Can I make tax-free withdrawals? Yes, anytime. No. Subject to withdrawal taxes.
Can I top up again after withdrawals? Yes No
Are these savings tax deductible? Deposits are not but earnings and withdrawals are tax-free. Yes, and tax-sheltered until withdrawn.
Is the interest I earn tax-sheltered? Yes Yes

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* Based on the proposed Federal budget changes, learn more or call CRA 1-800-959-8281.