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TAX FREE SAVINGS ACCOUNT (TFSA)

TAX FREE SAVINGS ACCOUNTS enable investors to grow their savings tax-sheltered regardless of what their savings goal is. Next year’s vacation. A new car. House renovations. Or just a rainy day. Your contributions are not tax-deductible (which means you’re putting in “after-tax dollars”) – it also means that any growth in the plan is tax-sheltered and any withdrawals are tax-free. In other words, the growth and withdrawals are not subject to any tax.

BENEFITS OF A TAX FREE SAVINGS ACCOUNT (TFSA)

  • The opportunity to earn investment income, tax-free – Any interest, capital gains or dividend income you earn within the account is not subject to tax

  • The flexibility to withdraw your savings, tax-free – At any time and for any purpose you choose

  • The ability to contribute to a spouse’s TFSA – Remember, your total contribution to any account cannot exceed the maximum allowed

  • A wide range of investment options for enhanced flexibility – Including mutual funds, guaranteed investment certificates (GICs), stocks, bonds and cash

  • No impact to your government benefits – No income you receive or withdrawals you make from a TFSA will affect your eligibility to receive income-tested benefits such as the Guaranteed Income Supplement, Canada Child Tax Benefit or Old Age Security benefits

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The Basics

Eligibility 

  • Anyone 18 years of age and over who is a resident of Canada can open a TFSA

  • A valid Social Insurance Number is required to open an account

  • You do not need to have earned income or file an income tax and/or benefit return

Contributions

  • Unused contribution room can be carried forward to future years

  • Any amount withdrawn from a TFSA can be re-contributed in future years without reducing contribution room

  • Spouses (and common-law partners) can give each other money to contribute to their own TFSA as long as it is within the maximum allowed. TFSA assets can be transferred to a spouse tax-free upon death

Withdrawals

  • No tax will be withheld

  • Funds may be withdrawn for any purpose

  • No limit on the amount of each withdrawal

 Tax features

  • Account is funded with after-tax dollars

  • Earnings growth in plan is tax-sheltered

  • Withdrawals from the account remain tax-free

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REGULATED BY MUTUAL FUND DEALERS

ASOCIATION OF CANADA

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www.mfda.ca

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Mutual Fund Disclosure:

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus and/or fund facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 
Insurance Disclosure:

Subject to any applicable death and maturity guarantee, any part of the premium or other amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value according to fluctuations in the market value of the assets in the segregated fund. A nominee account is one in which an investment is held in trust for an individual by a corporation or entity other than the individual. A segregated fund policy held within a self-directed plan is one example of investing in a nominee account. A segregated fund held in a nominee account may not offer creditor protection. Please read your Information Folder carefully and seek professional advice before investing. Commissions, trailing commissions, management fees and expenses may be associated your insurance contract. 
*Insurance products and services provided through Carte Risk Management Inc., Carte Financial Services Inc., Custom Benefits Inc., Financial Horizons, and Great West Life. 
**Mutual funds provided through Carte Wealth Management Inc.

Copyright 2019 © Blue Harbour Financial Inc.

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