Tax-Free Savings Account (TFSA)
What is a TFSA?
It’s a registered account that was introduced in 2009. Taxes do not apply on any contributions, interest earned, dividends, or capital gains. You can use a TFSA for any of your financial goals, short-term or long-term or as an emergency fund.
Here are the reasons why:
- Your money grows, tax-free
- Retired and unemployed individuals can contribute
- Unused contribution rooms can be carried forward – indefinitely
- Withdraw funds anytime, for any purpose
- Use a TFSA to achieve any of your financial milestones
Any Canadian resident with a Social Insurance Number (SIN) who has reached the age of majority (18 or 19, depending on the province) can open a TFSA. Unlike an RRSP, you do not have to have earned an income to make contributions to a TFSA.
A TFSA can hold a variety of investment options: Guaranteed Investment Certificates (GICs), mutual funds, stocks, and bonds. Flip My Life can help you decide which investments will best serve your needs.
No. Investment income and withdrawals from a TFSA are not included as income for tax purposes, which means they will not affect your eligibility for Federal income-tested government benefits and credits such as the Canada Child Tax Benefit, the Working Income Tax Benefit, the Guaranteed Income Supplement, Old Age Security (OAS) or the Goods and Services Tax (GST) credit.
Yes. If you are eligible to contribute, your unused contribution room can be carried forward indefinitely and there is no limit on how much contribution room you can accumulate.
Mutual Funds are sold by Flip My Life Inc. There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Please contact a financial advisor and read the Fund Facts before investing. Mutual fund securities are not insured by the Canada Deposit Insurance Corporation. For funds other than money market funds, unit values change frequently. Past performance does not determine future performance.
Flip My Life Inc. is licensed as a financial planning firm in the province of Ontario.
Financial planning services and investment advice are provided by Flip My Life Inc.