Introduced in 2009, Tax Free Savings Accounts (TFSA) are designed to help Canadians save more.
Some things to know about TFSA’s;
- TFSAs are available to Canadians age 18+.
- As of January 1, 2021, there is lifetime maximum of $75,500 assuming the individual was 18 in 2009. If you don’t contribute the full amount each year, you can carry forward the unused amounts, based on the contribution limits for each year.
- You can save tax free for any goal you want (car, home, vacation, emergency, retirement).
- You don't need earned income to contribute.
- You don't have to set up a TFSA or file a tax return to earn contribution room.
- You can take money out when you want, for any reason, without paying any tax.
- If you take money out, you can re-contribute it the following year, in addition to the annual maximum.
- You can put money into your spouse’s or common-law partner’s account.
- You can invest in an array of investment options
Lets talk about how you can take advantage of this investment vehicle!