The Tax-Free Savings Account (TFSA) is an account that provides tax benefits for saving in Canada. Investment income, including capital gains and dividends, earned in a TFSA is not taxed, even when withdrawn. Contributions to a TFSA are not deductible for income tax purposes, unlike contributions to a Registered Retirement Savings Plan (RRSP).
• No tax on the growth of your investments.
• No tax on withdrawals.
• No tax when your TFSA passes to your heirs
• You can try to save the maximum each year.
• The starting age for contributions is 18; and enjoy tax-free growth.
• With TFSAs, you can designate a successor-holder of your TFSA accounts.
• Money deposited in the TFSA is not tax-deductible.
• There’s no age limit to contributing to TFSAs; you can continue to invest even after the age of 71.
• Investors can contribute a maximum of $5,500 per year.
• A major benefit of TFSAs is that money invested in them can grow tax free-for life.
• By contributing any amounts you withdraw in the calendar year following the withdrawal.
Unlike other registered tax-deferred plans, earnings throughout your lifetime from qualified investments in your Tax-Free Savings Account—whether interest, dividends or capital gains—are never subject to Canadian tax. You don’t pay taxes even when you withdraw your mone