TFSA
What is a Tax-Free Savings Account (TFSA)?
The Government of Canada introduced the Tax Free Savings Account (TFSA) in 2009 to provide Canadians with a personal savings vehicle, tax free.
Who qualifies?
Canadian residents with a valid Social Insurance Number (SIN) and is 18 years of age or older.
Note: Non-residents may be eligible to open a TFSA account; however, contributions are subject to tax.
Advantages
As an incentive for parents to contribute to their child’s post-secondary education, the federal government offers two funding mechanisms.
- Tax-free on any investment earnings
- Tax-free withdrawals
- Anyone over the age of 18 can invest
- Contribution limits are not determined by income
- No impact on government benefits
Contribution limit
The amount that you can contribute to your TFSA is limited to your contribution room.
- The 2024 TFSA contribution limit is $7,000.
-
Canadian residents that have never contributed to a TFSA, and were 18 years or older in 2009 have a contribution
room of $95,000 for 2024
The annual TFSA dollar limit for each of the years from 2009 to 2024 are:
| Year | Annual Contribution Limit |
|---|---|
|
2009 to 2012 |
$5,000 |
|
2013 and 2014 |
$5,500 |
|
2015 |
$10,000 |
|
2016 to 2018 |
$5,500 |
|
2019 to 2022 |
$6,000 |
|
2023 |
$6,500 |
|
2024 |
$7,000 |
Source: Canada Revenue Agency
Contact a 3i Financial Group Advisor today to develop a plan that ensures you to take advantages of the tax-free savings strategies of a TFSA