TFSA – Tax-free savings account

A TFSA is a savings account that is both unique and flexible, allowing you to grow your savings on a tax-sheltered basis for a personal project. How is it flexible? You can withdraw whatever you want without having to pay tax on the amount withdrawn from the plan.

Advantages of a TSFA

After an RRSP, a TSFA is the most advantageous tool created by the Canadian government to foster personal savings. It allows you to:

  • Shelter your contributions and the returns they generate
  • Achieve a personal project when you’re ready (buying a house or a new car, taking a trip)
  • Accumulate your annual contributions when they aren’t used
  • Move specific income (inheritance, gifts, investment income) to a tax shelter, up to the maximum amounts provided by law
  • Withdraw funds at any time without tax implications

Continue to save for your retirement, even if you have reached the limit for your eligible RRSP contributions