TFSA Facts
TFSA Facts
There are many things you can save for through a TFSA - home renovations, new car, vacation, your child's wedding, your retirement, and even money set aside and readily available for life’s little emergencies.
To Open a TFSA, You Will Need:
- A valid Canadian Social Insurance Number
- To be at least 18 years old
- To be a Canadian resident
Additional Information
1
Contribution Deadline
December 31 for that calendar year.
7
Maximum Age
No maximum age
1
Contribution Deadline
December 31 for that calendar year.
7
Maximum Age
No maximum age
2
Carry Forward
TFSA contribution room can be carried forward indefinitely to subsequent years.
8
Minimum Age
You cannot contribute retroactively for the years prior to 18 years of age.
2
Carry Forward
TFSA contribution room can be carried forward indefinitely to subsequent years.
8
Minimum Age
You cannot contribute retroactively for the years prior to 18 years of age.
3
Contribution Limit
The Canada Revenue Agency (CRA) will track your contribution room. CRA reports this amount to individuals through the 'My Account' function on the CRA website. It's $6,000 for 2020.
9
Spousal Contribution
Spouses (and common-law partners) can give each other money to contribute to their own TFSA as long as it’s within the maximum allowed. TFSA assets can be transferred to a spouse tax-free upon death.
3
Contribution Limit
The Canada Revenue Agency (CRA) will track your contribution room. CRA reports this amount to individuals through the 'My Account' function on the CRA website. It's $6,000 for 2019.
9
Spousal Contribution
Spouses (and common-law partners) can give each other money to contribute to their own TFSA as long as it’s within the maximum allowed. TFSA assets can be transferred to a spouse tax-free upon death.
4
Government Benefits
Your TFSA will not affect your eligibility to receive benefits such as the Guaranteed Income Supplement, Canada Child Tax Benefit or Old Age Security benefits, etc.
10
Tax Features
Account is funded with after-tax dollars. Earnings growth is tax-sheltered. Withdrawals from the account remain tax-free.
4
Government Benefits
Your TFSA will not affect your eligibility to receive benefits such as the Guaranteed Income Supplement, Canada Child Tax Benefit or Old Age Security benefits, etc.
10
Tax Features
Account is funded with after-tax dollars. Earnings growth is tax-sheltered. Withdrawals from the account remain tax-free.
5
Overcontribution Penalty
1% per month on overcontribution amounts (even if the contribution was withdrawn in the same tax year).
11
Type of Investments
Wide range of investments, including mutual funds and exchange-traded funds.
5
Overcontribution Penalty
1% per month on overcontribution amounts (even if the contribution was withdrawn in the same tax year).
11
Type of Investments
Wide range of investments, including mutual funds and exchange-traded funds.
6
Withdrawals
Any amount withdrawn from a TFSA is added to your contribution room for the following year and can be carried forward indefinitely to subsequent years. You can withdraw your savings tax-free at any time and for any purpose
6
Withdrawals
Any amount withdrawn from a TFSA is added to your contribution room for the following year and can be carried forward indefinitely to subsequent years. You can withdraw your savings tax-free at any time and for any purpose
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