Open TFSA (Tax-Free Savings Account)

• The introduction of the TFSA in Canada is becoming popular as an investment vehicle that allows Canadians to earn Tax Free Growth on their investments.
• It is available to anyone who is 18 years of age or older and who has a valid Canadian Social Insurance Number (SIN).
• In 2015 $10,000 per year could be contributed to the account.
• In 2013 and 2014 $5,500 per year could be contributed to the account.
• In 2009, 2010, 2011, and 2012 $5,000 per year could be contributed to the account.
• Unused contribution room is carried forward to future years.
  • Example 1:
    If a person qualified to contribute from 2009 and has not deposited any funds then that person could contribute up to $41,000 in 2015.
• Any growth inside of a TFSA will not be taxed and in turn any contributions to a TFSA or capital losses within a TFSA will not be tax deductible.
• Withdraws will not trigger any capital gains tax, income tax nor dividend tax. (TFSA's are not subject to taxation)
• Any amount withdrawn in a given year will be carried forward as contribution room for the next year. For example: (Matthew) contributed $5000 in 2011 then withdrew $3000 later that same year. In 2012 Matthew will be able to contribute $8000. This amount includes $5000 for 2012 and $3000 that was withdrawn in 2011.
• For more information and support from CRA visit: www.tfsa.gc.ca