Tax-Free Saving Accounts (TFSA)
![TFSA Contribution Limit](/uploads/1/3/1/4/131465002/editor/tfsa-contribution-limit.png?1585606951)
A Tax Free Savings Account (TFSA) is a registered investment or savings account that allows for tax free gains. The amount of money that can be contributed to a TFSA is limited each year. A TFSA can be used for any savings goal and withdrawals.
The TFSA program began in 2009. It is a way for individuals who are 18 years of age or 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income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. The benefit of holding an investment within a TSFA is that you won't be taxed on any income the investment earns.
You can hold a wide range of investments in a Tax-Free Savings Account (TFSA), like cash, GICs, bonds, stocks, ETFs and mutual funds.
The amount that you're allowed to deposit into a TFSA is called your "contribution room." Even if you didn't have a TFSA at the time, you accumulated contribution room for every year since 2009 that you were age 18 or older and were a resident of Canada.
Any unused contribution room from one year can be carried forward to the next year. Any withdrawal amount is added back to your contribution room at the beginning of the following year.
Important: The income earned by investment in your TFSA does not impact your contribution room for current or future years.
A Tax Free Savings Account (TFSA) is a registered investment or savings account that allows for tax free gains. The amount of money that can be contributed to a TFSA is limited each year. A TFSA can be used for any savings goal and withdrawals.
The TFSA program began in 2009. It is a way for individuals who are 18 years of age or 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income earned in the account (for example, investment income and capital gains) is generally tax-free, even when it is withdrawn. The benefit of holding an investment within a TSFA is that you won't be taxed on any income the investment earns.
You can hold a wide range of investments in a Tax-Free Savings Account (TFSA), like cash, GICs, bonds, stocks, ETFs and mutual funds.
The amount that you're allowed to deposit into a TFSA is called your "contribution room." Even if you didn't have a TFSA at the time, you accumulated contribution room for every year since 2009 that you were age 18 or older and were a resident of Canada.
Any unused contribution room from one year can be carried forward to the next year. Any withdrawal amount is added back to your contribution room at the beginning of the following year.
Important: The income earned by investment in your TFSA does not impact your contribution room for current or future years.
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So? Who can open a TFSA?
Any individual who is 18 years of age or older and who has a valid SIN is eligible to open a TFSA.
How to Open a TFSA?
To open a TFSA, you must do the following:
Any individual who is 18 years of age or older and who has a valid SIN is eligible to open a TFSA.
How to Open a TFSA?
To open a TFSA, you must do the following:
- Contact your financial institution, credit union, or insurance company and
- Provide the issuer with your SIN and date of birth so the issuer can register your qualifying arrangement as a TFSA. Your issuer may ask for supporting documents
I recommend opening a TFSA with Tangerine
- They offer no fee chequing account
- Their rates are 2.15% when you open up a TFSA with them
- Great Customer Service
Also you can also make $200 extra cash by
becoming a new Client using the Orange Key “55129059S1” and open your first no-fee daily Chequing Account by December 31, 2020 with a minimum initial deposit of $250 and you can earn $200* when you set up either of the following recurring transactions in your new Account:
becoming a new Client using the Orange Key “55129059S1” and open your first no-fee daily Chequing Account by December 31, 2020 with a minimum initial deposit of $250 and you can earn $200* when you set up either of the following recurring transactions in your new Account:
- Have your eligible payroll direct deposits deposited into your Tangerine Chequing Account within 60 days of successfully opening your Account. Your $200 will be paid after the first 3 consecutive months of payroll direct deposits. OR
- Set up 2 eligible recurring pre-authorized payments of at least $50 each with the first withdrawal for each occurring within 60 days of successfully opening your Account. Your $200 will be paid after the first 3 consecutive months of both recurring pre-authorized payment withdrawals.