TFSA Basics

A Tax-Free Savings Account (TFSA) is a great tool for saving, whether you’re saving for a rainy day, home repairs, or retirement. Because you can withdraw the money tax-free whenever you need it, TFSAs are also a good choice for an emergency savings fund.

TFSA basics

If you do withdraw money from your TFSA, you won’t lose yearly contribution room because the withdrawn amount will be added to your contribution limit for the following year, or any year after that. As well, any unused contribution room gets carried over to the following year.

Talk to your account manager about how to best take advantage of this great, versatile saving product.

TFSA Basics

  • The TFSA is available to Canadians 18 years of age or older.
  • Investment income earned in the account is not taxed.
  • Much like an RRSP, a range of investment vehicles, including savings accounts, guaranteed investment certificates and mutual funds can be held in a TFSA.
  • Up to $5,000 can be contributed for each year between 2009 and 2012. The contribution limit for 2013 is $5,500.
  • Unused contribution room can be carried forward indefinitely.
  • While contributions are not tax-deductible, tax-free withdrawals can be made anytime.
  • Any withdrawals from the plan add to future contribution room, letting you “replace” whatever you take out the following year.

Learn more about Tax-Free Savings Accounts.

About Adam Richard

Adam C. Richard, is a Wealth Adviser with Aviso Wealth at ACU Wealth Management. His goal is to build enduring relationships by helping client establish achievable lifetime goals and then tailoring investment and retirement income plans to meet their specific needs. Contact: Assiniboine Financial Group 200-900 Harrow Street East 204.258.3382 arichard@assiniboine.mb.ca

View all posts ›

Up Next

Smiling Asian woman holding a little girl

Celebrate Asian Heritage Month in Winnipeg

May is Asian Heritage Month, celebrate in Winnipeg. Check out the Taste of Asia (May 25 and 26), a free admission event at The Forks featuring food trucks, music, art,…

Read more ›
,

RRSP vs. TFSA vs. FHSA: Breaking down the options for buying your first home

Many ACU members are familiar with their options when saving for a down payment. Tax Free Savings Accounts (TFSAs) offer shelter from taxes on growth, while a Registered Retirement Savings…

Read more ›
,

10 steps to buying your first home

Buying a new home in Winnipeg can be an exciting time. After all, you can finally move into a place to call your own—whether you’re leaving that long-term rental property,…

Read more ›