TFSA We Are Always Here To Help!
What are TFSAs?
A federal government tax-shelterd saving program, designed to encourage
Candians to save and invest for short, medium or long-term goals.
Benefits at a Glance
- Investments inside a TFSA are tax sheltered
- Contributions are after-tax (no deducation)
- Withdrawals are tax-free(no withholding)
- Annual Limit: $5,500 each year (beginning at age 18)
+ Previous Contribution Room
+ Previous year withdrawals
- For 2018, the total contribution room since 2009 is $57,500
- Contribution Period: January 1 to December 31 each year.
- Contributions above the overall contribution limit are subject to a 1% / month penalty
(refer to CRA website)
- A client’s contribution room can be found in their Notice of Assessment, CRA My
- Account(online), Notice of Reassessment, and T1028
- In-kind contributions: capital gains must be declared, and capital losses cannot be claimed. The current market value is used to calculate the contribution amount
- There is no spousal TFSA
- There is no income attribution
- A TFSA may have a successor holder (spouse) or a named beneficiary