Flexible savings tool, tax free growth

TFSA is a smart way to save your money and see your savings grow tax-free. Canadians aged 18 and older can save every year in a tax- free savings account. It can contain a variety of investments such as mutual funds, GICs, stocks and bonds or segregated funds. In just about 10 yrs. TFSA has replaced the RRSP as the primary savings vehicle in Canada. TFSA is also a good supplemental instrument once you have reached the RRSP contribution limit. Here’s is what you need to know about your TFSA;

Withdrawals are tax-free
All withdrawals — capital and interest—are tax-free. This means you can withdraw funds from your TFSA as often as you want without tax penalty. Withdrawals aren’t added to your annual income, so you won’t risk your eligibility for certain government benefits and credits, like the Canada Child Benefit or the GST/HST tax credit, which are based on your declared income

TFSA contributions aren’t tax deductible
Unlike RRSPs, you can’t deduct your TFSA contributions. There’s no need to include your TFSA tax slips with your income tax return. In fact, it’s because contributions aren’t deductible that withdrawals are tax-free.
Anyone can open a TFSA
As of 2009, all Canadian residents 18 and older can have a TFSA, whether they’re students, employees, self-employed workers or retirees. And you can carry forward any unused contribution room to the next year. If you never made any contributions to a TFSA, the 2020 limit will be $69,500.

An excellent emergency fund
Your TFSA account allows you to put money aside and watch it grow tax-free. This money can be used as a cushion in case of emergency, like losing a job or for an unexpected expense like car or house repairs. Because your situation is unique, your Insurepedia Expert can help you determine your needs and help you find the best solution for your situation.

Want to know more ? Call us now.

Call Us

Send a message
Hello 👋
Looking for best insurance rates? You have come to the right place. Let's talk!