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glacierFind out more about TFSAs

The Tax-Free Savings Account (TFSA) is a registered savings plan that allows you to build capital to put towards special projects throughout your life.

If you are over 18 years of age, the TFSA offers you the chance to save up to $5,500 per year, tax-free!


Basic Notions

The TFSA is a registered savings plan that allows you to:

•  save for important projects
•  cover unexpected expenses (rainy day fund)
•  shelter your savings from taxes
•  get tax-free investment income
•  make tax-free withdrawals
•  make non-deductible contributions

Contribution Rules

•  To open a TFSA, you must meet the following conditions:

• have a social insurance number
• be 18 years of age or over
• be a resident of Canada

•  Maximum annual contribution of $5,000 from 2009 to 2012 and $5,500 as of 2013.
•  Annual contribution limits are cumulative, along with withdrawals made from your TFSA over previous years.


The TFSA is a registered savings account that allows taxpayers to earn investment income tax-free inside the account. Contributions to the account are not deductible for tax purposes, and withdrawals of contributions and earnings from the account are not taxable.

Each year individuals can contribute an amount up to their contribution room for the year. Your contribution room would be made up of three amounts:

•  Each year you would be allocated and allowed to contribute up to the annual maximum ( $5,500 for 2013.)
•  Any withdrawals made in the previous year would be added to the contribution room for the year..
•  Any unused contribution room from the previous year would be added to the contribution room for the year.

A TFSA is permitted to hold the same investments as a registered retirement savings plan. This includes mutual funds, publicly traded securities, GICs, bonds, and certain shares of small business corporations.

The CRA will determine TFSA contribution room (based on information provided by issuers) for each eligible individual who files an annual T1 individual income tax return.

For more details about how you can benefit from the a Tax Free Savings Account please contact me.

For answers to other Frequently Asked Questions visit the website link below:

Tax Free Savings Accounts