What Is TFSA?
The Government of Canada introduced the Tax Free Savings Account (TFSA) in 2009 to provide Canadians with a personal savings vehicle, tax free.
TFSA Facts
- Tax-free on any investment earnings
- Tax-free withdrawals
- No age limit
- Contribution limits are not determined by income
- No impact on government benefits
- Spouses (and common-law partners) can give each other monies to contribute to their own TFSA without triggering attribution rules. TFSA assets can be transferred to a spouse tax-free upon death.
- An individual can only contribute up to their TFSA contribution room. Unused TFSA contribution room can be carried forward to later years.
| Year | Annual Contribution Limit | Cumulative Limit |
|---|---|---|
|
2021 |
$6,000 |
$75,500 |
|
2020 |
$6,000 |
$69,500 |
|
2019 |
$6,000 |
$63,500 |
|
2018 |
$5,500 |
$57,500 |
|
2017 |
$5,500 |
$52,000 |
- The 2021 TFSA contribution limit is $6,000.
- Canadian residents that have never contributed to a TFSA, and were 18 years or older in 2009 have a contribution room of $75,500 for 2021.
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
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The articles posted on 3i Financial are not intended to provide specific advice or recommendations for any individual and for general information only. All contents and information are believed to be from verified sources; 3i Financial makes no representation as to its completeness or accuracy.