Tax Free Savings Account

A Tax Free Savings Account is a relatively simple investment structure that allows you to contribute up to $5,500 per year into a tax-sheltered account. Unlike withdrawals from an RRSP, withdrawals from a TFSA are not taxable.

The main benefits of setting up a TFSA are:

  • It shelters your investment gains and investment income from tax.
  • Assets can be held in cash, stocks, mutual funds and other types of investments
  • Cash can be withdrawn at any time without losing contribution room

 

In order to set up a TFSA, you must be over the age of 18 and a Canadian Resident.

To discuss how a TFSA can fit into your overall financial plan, please contact us.