Benefits of contributing to a TFSA
There are many benefits to having a TFSA as part of your investment and retirement savings strategy:
Pay no tax on earnings
Earnings from qualified investments (interest, dividends, or capital gains) within your TFSA are never taxed, so your money grows faster!
Hold onto your plan for life
Keep your TFSA as long as you live. Unlike the RRSP, you won’t have to close it at a set age.
No income requirements
Retired or stay-at-home parent? Contribute money from your spouse or put your RRIF withdrawals into a TFSA.
Pay no tax on withdrawals
Your TFSA savings can be withdrawn from your account at any time and all withdrawals are tax-free.
Keep your federal benefits
Your income earned and withdrawals made don’t affect eligibility for Federal income-tested government benefits or tax credits.
Eligible deposits are CDIC-insured
Your eligible savings are afforded coverage to a maximum of $100,000 separate from your other deposits.
RRSP vs. TFSA: what’s the difference?
TFSA | RRSP | |
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Flexible? |
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Tax Rules: |
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Direct Contributions? |
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Tax Deduction? |
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Withdrawal Rules: |
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Contribution Limits: |
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Expiration? |
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Who is eligible for a TFSA?
Any Canadian resident with a Social Insurance Number (SIN) who has reached the age of majority (18 or 19, depending on the province) can open a TFSA. Unlike an RRSP, you do not have to earn an income to make contributions to a TFSA.
How much can I contribute to a TFSA?
There are yearly contribution limits on TFSAs. Below are the contribution limits for each year the TFSA has been around. In addition to the annual contribution limit, your unused contribution room is carried forward indefinitely. Plus, withdrawals are added back to your contribution room the following year.
Maximum annual TFSA contribution limits since 2009:
Year | TFSA Annual Limit | Cumulative Total |
|---|---|---|
| 2009 - 2012 | $5,000 | $20,000 |
| 2013 - 2014 | $5,500 | $31,000 |
| 2015 | $10,000 | $41,000 |
| 2016 - 2018 | $5,500 | $57,500 |
| 2019 - 2020 | $6,000 | $69,500 |
| 2021-2022 | $6,000 | $81,500 |
| 2023 | $6,500 | $88,000 |
| 2024 | $7,000 | $95,000 |
We’re here to help
What to put into your TFSA
Talk to one of our representatives to learn how a WealthONE TFSA can hold a variety of your investments, including:
Retirement savings
The Essentials of Registered Retired Savings Plans (RRSPs)
Registered with the Canadian government, an RRSP lets you save for your retirement in a tax-sheltered account. You receive an immediate tax benefit when you contribute to your RRSP in your working years as the contributions are tax deductible.
These calculators are made available to you as tools for independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy. All examples are hypothetical and are for illustrative purposes only.
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